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Harrell Company Uses a Predetermined Overhead Rate Based on Direct

Question 13
Multiple Choice

Harrell Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs.At the beginning of the year,the company estimated its total manufacturing overhead cost at $400,000 and its direct labour hours at 100,000 hours.The actual overhead cost incurred during the year was $350,000 and the actual direct labour hours incurred on jobs during the year was 90,000 hours.What would be the manufacturing overhead for the year? A) $10,000 underapplied. B) $10,000 overapplied. C) $50,000 underapplied. D) $50,000 overapplieD. Rate = $400,000/100,000 hrs.= $4/hr.Actual OH = $350,000 therefore overapplied by $10,000

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Q 14
For the current year,Paxman Company incurred $150,000 in actual manufacturing overhead cost.The Manufacturing Overhead account showed that overhead was overapplied in the amount of $6,000 for the year.If the predetermined overhead rate was $8.00 per direct labour hour,how many hours were worked during the year? A) 17,750 hours. B) 18,000 hours. C) 18,750 hours. D) 19,500 hours.DL Hours = $156,000/$8/hr = 19,500 hours
Q 15
Carlo Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs.The company estimated manufacturing overhead at $255,000 for the year and direct labour hours at 100,000 hours.Actual manufacturing overhead costs incurred during the year totalled $270,000;actual direct labour hours were 105,000.What was the overapplied or underapplied overhead for the year? A) $2,250 overapplied. B) $2,250 underapplied. C) $15,000 overapplied. D) $15,000 underapplieD. OH rate = $255,000/100,000 hrs.= $2.55/hr.Actual overhead = $270,000 therefore Underapplied $2,250
Q 16
Sawyer Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs.Last year,the company worked 57,000 actual direct labour hours and used 40,000 machine hours.The company had estimated that it would work 55,000 direct labour hours using 44,000 machine hours during the year and incur $330,000 of manufacturing overhead cost.What was the company's manufacturing overhead applied for the year? A) $345,000. B) $342,000. C) $330,000. D) $300,000.Applied = 57,000 DLH @ $6/DLH = $342,000
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