Homework Answers
| Predtermined Overhead Rate =Estimated manufacturing overhead / Estimated direct labor hours | ||
| Predtermined Overhead Rate =$242,100 / 7100 hours =$34.10 per direct labor hours | ||
| Manufacturing overhead applied =Predtermined Overhead Rate*Actual direct labor hours | ||
| Manufacturing overhead applied =$34.10*5,400 hours =$184,140 | ||
| Actual Manufacturing overhead =$243,600 | ||
| Underapplied Manufacturing Overhead =Actual Manufacturing overhead - Manufacturing overhead applied | ||
| Underapplied Manufacturing Overhead =$243,600 - $184,140 =$59,460 | ||
| So Option B is answer | ||
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