Reference no: EM132792416

Question - Capone Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on a total estimated overhead of $77,250 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $79,000 and actual direct labor-hours were 2,400.

Required -

1. Capone's predetermined overhead rate for the year was:

$30.90 per direct labor hour

$31.60 per direct labor hour

$29.66 per direct labor hour

$32.92 per direct labor hour

2. The total amount of manufacturing overhead Capone applied to jobs for the year was:

$79,008

$74,160

$71,184

$75,840

3. Capone's manufacturing overhead for the year was:

$3,090 overapplied

$3,090 underapplied

$4,840 overapplied

$4,840 underapplied