Compute the predetermined manufacturing overhead rate

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Acme Fireworks uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $1,000,000 and direct labor hours are budgeted at 200,000 hours. Actual hours worked were 195,000 and actual overhead was $978,000.

(a) Compute the predetermined manufacturing overhead rate.

(b) Compute the applied manufacturing overhead.

(c) Compute the amount of over/under applied manufacturing overhead.

Reference no: EM13454108

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