Weaver Company assigns overhead on the basis of direct labor hours. The cost accountant estimates that total overhead costs for the year are expected to be $320,000 and that a total of 40,000 direct labor hours will be worked.
The following information pertains to Job A-200:
Direct materials
$250
Direct labor hours worked
25
Hourly wage rate
$12
Units produced
50
Actual overhead costs incurred for Job A-200
$235
Required:
Calculate the predetermined overhead rate for Weaver Company for the year?
2. Calculate the total product cost and cost per unit for Job A-200.
3. Calculate the amount of underapplied or overapplied overhead for Job-A200. Make sure to the label the amount as overapplied or underapplied.