Crinks Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840.At the end of the year,actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840.Overhead at the end of the year was:
A)$4,280 overapplied
B)$9,280 overapplied
C)$9,280 underapplied
D)$4,280 underapplied

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Estimated total amount of the allocation base
= $259,840 F1F1F1S1F1F1F10 11,200 direct labor-hours
= $23.20 per direct labor-hour
Manufacturing overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Actual direct labor-hours
= $23.20 per direct labor-hour F1F1F1S1F1F1F10 10,800 direct labor-hours
= $250,560 11eaa48f_7bf1_4763_9e4a_a964952e78ab_TB2485_00

Crinks Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate