Factory overhead for the Praeger Company has been estimated as follows: (10 points) Fixed overhead Variable overhead Budgeted direct labor hours…
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Factory overhead for the Praeger Company has been estimated as follows: (10 points)
|
Fixed overhead |
$122,500 |
|
Variable overhead |
$90,000 |
|
Budgeted direct labor hours |
42,500 |
Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000.
Calculate:
|
a. |
The predetermined factory overhead rate. |
|
b. |
The under- or overapplied factory overhead. |
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