1.Crichman Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 14,900 hours and the total estimated manufacturing overhead was $362,070. At the end of the year, actual direct labor-hours for the year were 16,000 hours and the actual manufacturing overhead for the year was $357,070. Overhead at the end of the year was:
a. 31730 overapplied
b. 26730 overapplied
c. 31730 underapplied
d. 26730 underapplied
2.Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
The applied manufacturing overhead for the year was closest to
a. 229586
b. 234600
c. 242006
d. 236854