Task:
The following data pertain to the Oneida Restaurant Supply Company for the year just ended.
Budgeted sales revenue......... $205,000
Actual manufacturing overhead... 340,000
Budgedted machine hours.......... 10,000
Budgeted direct-labor hours...... 20,000
Budgeted direct-labor rate.......... $14
Budgeted manufacturing overhead. 364,000
Actual machin hours.............. 11,000
Actual direct-labor hours........ 18,000
Actual direct-labor rate............ $15
1) What is the predetermined overhead rate for the year using machine hours?
2) What is the firm's predetermined rate for direct labor hours?
3) What is the overapplied or underapplied overhead for the year for the firm using a)machine hours, b) direct-labor hours, and c) direct-labor dollars?