Mok Company uses a predetermined cost-driver rate based on direct labor hours. For November, Mok's budgeted overhead was $1,200,000 based on a budgeted activity of 400,000 direct labor hours. Actual overhead was $1,300,000 with actual direct labor hours totaling 440,000.
Required: Calculate the over or under applied overhead for November.

Question

Quizplus · Accepted Answer

The Answer of Mok Company uses a predetermined cost-driver rate based on direct labor hours. For November, Mok's budgeted overhead was $1,200,000 based on a budgeted activity of 400,000 direct labor hours. Actual overhead was $1,300,000 with actual direct labor hours totaling 440,000.
Required: Calculate the over or under applied overhead for November.

Mok Company Uses a Predetermined Cost-Driver Rate Based on Direct