EstimatedActualOverhead cost $174,000 $171,000Direct labor hours 5,800 5,900Direct labor cost $90,155 $87,000How much is the predetermined overhead rate?Student Answer:$1.9030.00$2.00$1.93Instructor Explanation:We divide the estimated overhead, $174,000, by estimated labor cost of $87,000 = $2 per dollar of labor cost.
Points Received:7 of 7Comments:Question 6.Question :(TCO 2) During 2015, Michael Company applied overhead using a job-order costing system at a rate of $15 per direct labor hours. Estimated direct labor hours for the year were 150,000, and estimated overhead for the year was $2,250,000. Actual direct labor hours for 20x1 were 140,000, and actual overhead was $2,400,000.What is the amount of under- or over-applied overhead for the year?
Points Received:0 of 7