Amanda Bitsworth manufactures votive candles. Overhead is applied to products on
ID: 3417398 • Letter: A
Question
Amanda Bitsworth manufactures votive candles. Overhead is applied to products on the basis of direct labor hours. Last year, total overhead costs were expected to be $86,000. Actual overhead costs totaled $59,000 for 7,000 actual hours. At the end of the year, overhead was underapplied by $4,500
A. Calculate the predetermined overhead rate. If required, round your answer to nearest dollar.
__________ Per direct labor dollar
B. How much overhead should be applied to a job that was completed in three direct labor hours?
Explanation / Answer
A.
86000/7000=$ 12.3
B.
3*12.3=$36.9