Calculator cavy company estimates that the factory overhead for the following year will be $1,250,000. the company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. the machine hours for the month of april for all of the jobs were 4,780. if the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.

Over applied overheads = $7,575

Explanation:

In the given instance:

Rate of predetermined overhead per hour =

That means rate = $31.25 per hour

Actual working hours = 4,780

Budgeted overheads accordingly = 4,780 $31.25 = $149,375

Whereas, actual incurred overheads = $141,800

Therefore overheads over applied = Budgeted - Actual = $149,375 - $141,800 = $7,575

15 pounds of apples and 6 cups of flour

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.