iew History Bookmarks Windoww Help 2 6 Help Exercise 11-5A Treatment of overappl

Question

iew History Bookmarks Windoww Help 2 6 Help Exercise 11-5A Treatment of overapplied or underapplied overhead LO 11-2 Pawhuska Company estimates that its overhead costs for 2018 will be $644,000 and output in units of product will be 280,000 units Required a. Calculate Pawhuska's predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.) b 23,000 units of product were made in March 2018, how much overhead cost would be alocated to the work in Process inventory account during the month? (Do not round intermediate calculations.) c. If actual overhead costs in March were $54,500, would overhead be overapplied or underapplied and by how much? (Do not round intermediate calculations.) per unit b. Allocated overhead cost c Ovethead conts 8 MacBook Air ?0

Explanation / Answer

Ans)

a) Predetermined overhead rate = 644,000 / 280,000 units = 2.3 per unit

b) Allocated overhead cost = 23000 X 2.3 per unit = $ 52,900

c) 54,500 - 52,900 = 1600 under applied  

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