Haldane Company estimates that its overhead costs for 2014 will be $214,500 and
ID: 2452974 • Letter: H
Question
Haldane Company estimates that its overhead costs for 2014 will be $214,500 and output in units of product will be 286,000 units.
Calculate Haldane’s predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.
If 27,000 units of product were made in March 2014, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
Allocated overhead cost=______
If actual overhead costs in March were $19,610, would overhead be overapplied or underapplied and by how much? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
Haldane Company estimates that its overhead costs for 2014 will be $214,500 and output in units of product will be 286,000 units.
Explanation / Answer
Haldane Company a Details Amt /units m Estimated Overhead cost 2014 $ 214,500 n Estimated output in units 286,000 units o Predetermined Overhead rate per unit of production =m/n= $ 0.75 per unit b p March 2014 output 27,000 units q Overhead Allocated to WIP during month= p*o= $ 20,250 c r Actual Overhead cost March= $ 19,610 s Overhead Overapplied during March=q-r= $ 640
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