Bubba’s Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours.

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Bubba’s Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $3,175,000 and direct labor hours are budgeted at 155,000 hours. Actual overhead was $4,200,000 and actual overhead hours worked were 185,000. 

 

(a)  Calculate the predetermined overhead rat(E)

(b)  Calculate the overhead applie(D)

(c)  Determine the amount of overhead that is over/underapplie(D)

    • 10 years ago
    Bubba’s Crawfish Processing Company__correct w/ solutions !
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