question archive The fear information was gathered for all the product Budgeted factory overhead rate 528 per DL hour Actual direct labor hours 8
The fear information was gathered for all the product Budgeted factory overhead rate 528 per DL hour Actual direct labor hours 8
Subject:AccountingPrice:2.84 Bought4
The fear information was gathered for all the product Budgeted factory overhead rate 528 per DL hour Actual direct labor hours 8.100 Actual factory overhead costs $224,970 Cost of Goods Sold $120,000 Ending Inventory of Finished products $40,000 Ending Inventory of WIP $23,000 Assume the cost driver for factory overhead costs is direct labor hours. Calculate the correct underapplied or overapplied overheads $ 118,800 O $ 118,170 9 $ 121,200
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| Applied Factory Overhead Costs |
| Applied Factory Overhead Costs = Actual direct labor hours x Budgeted overhead rate |
| Applied Factory Overhead Costs = 8,100 DL Hours x $28 per DL Hour |
| Applied Factory Overhead Costs = $226,800 |
| Actual Factory Overhead Costs = $224,970 |
| Here, the Applied Factory Overhead Costs is higher than the Actual Factory Overhead Costs |
| Therefore, the Overapplied overheads = Applied Overhead costs - Actual overhead costs |
| Overapplied overheads = $226,800 - $224,970 |
| Overapplied overheads = $1,830 |
