Chapter 5 In-class exercises with solutions - Chapter 5 In-class Exercises with Solutions Problem#1 Calculating the Predetermined Overhead Rate Applying

Chapter 5 In-class exercises with solutions - Chapter 5...

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1 Chapter 5 In-class Exercises with Solutions Problem #1 Calculating the Predetermined Overhead Rate, Applying Overhead to Production Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Debion Company estimated the following: Overhead $803,400 Direct labor hours 94,500 Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 16,065. Required: 1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent. Predetermined Overhead Rate = $803,400 / 94,500 = 8.5 per direct labor hour 2. Calculate the overhead applied to production in March. If required, round your answer to nearest whole value. Applied Overhead = $8.5 × 16,065 DLH = $136,553 Problem #2 Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under- and Overapplied Overhead At the beginning of the year, Horvath Company estimated the following: Overhead $160,000 Direct labor hours 80,000 Horvath uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 8,250. By the end of the year, Horvath showed the following actual
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