Problem
A manufacturer has the following information:
Budgeted or estimated Mfg OH costs = $16,800
Estimated Direct Labor hours by plant workers = 5000; Plant worker wages = $16/hour, budget & actual.
Estimated Machine Hours = 2500
Actual Mfg OH costs for the period = $16,297
Actual Machine Hours = 2583
Actual Direct Labor hours by plant workers = 5014
What is the predetermined overhead rate for manufacturing overhead?
What is the amount of applied manufacturing overhead?
What is the overapplied or underapplied manufacturing overhead?