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determining overhead rates, using direct labor cost, direct labor hour and machine hour methods, dethermining job

cost computing underapplied and overapplied overhead

abbey Products Comapny is studying the results of applying factory overhead to production. the following data have been used estimated factory overhead 60,000 estimated matirial costs, 50,000 estimated direct labor cost 60,000 estimated direct labor hour 10,000 estimated machine hour 20,000 work in process at the beginning of the month none.

the actual factory overhead incurred for november was 80,000 and the production statistics on November 30

compute the predetermined rate based on the following

direct labor cost

direct labor hour

machine hours

using each of the methods compute the estimated total cost of each job at the end of the month

determine the under or overapplied factory overhead in total at the end of the month under each of the methods

which method would you recommend? why?

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