3 Calculate the overhead variance for the month of June Exercise 5 31

3 calculate the overhead variance for the month of

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3. Calculate the overhead variance for the month of June. Exercise 5-31 Calculating the Predetermined Overhead Rate, Applying Overhead to Production 2
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At the beginning of the year, Debion Company estimated the following: Overhead $522,900 Direct labor hours 83,000 Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 7,600. Required: 1. Calculate the predetermined overhead rate for Debion. 2. Calculate the overhead applied to production in March. Exercise 5-32 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 $486,400 Direct labor hours 95,000 Horvath uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 7,830. By the end of the year, Horvath showed the following actual amounts: Overhead $476,100 Direct labor hours 93,500 Assume that unadjusted Cost of Goods Sold for Horvath was $707,000. Required: 1. Calculate the predetermined overhead rate for Horvath. 2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar.) 3. Calculate the total applied overhead for the year. Was overhead over- or underapplied? By how much?
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