Beaver Company used a predetermined overhead rate last year of $2 per direct labor-hour, based on an estimate of 25,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were:

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Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour based on an estimate of 25,000 direct labour hours to be worked during the year. Actual costs and activity during the year were:

Actual manufacturing overhead cost incurred = $47,000

Actual direct labour hours worked = 24,000

What was the under- or overapplied overhead last year?

1,000 overapplied

Explanation:

Beaver company made use of a predetermined overhead rate last year

$2 per direct labour hour on an estimate of 25,000 direct labour hours

The actual costs during the year is $47,000

The actual direct labour hours was 24,000

Therefore, the over or underapplied for last year can be calculated as follows

= (24,000×2)-47,000

= 48,000-47,000

= 1,000 overapplied

Hence, the overhead last year was 1,000 overapplied

the answer is d

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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.