10 May IF THE PREDETERMINED OVERHEAD RATE IS BASED ON LABOR HOURS WHAT IS THE TOTAL AMOUNT APPLIED TO THE PLANT WIDE OVERHEAD ACCOUNT FOR THE YEAR FOR WELCH?
Welch Company uses a predetermined overhead rate to apply overhead. At the beginning of the year Welch estimated its overhead costs at $240 000 direct labor hours at 40 000 and machine hours at 10 000. Actual overhead costs incurred were $249 280 actual direct labor hours were 41 000 and actual machine hours were 11 000.If the predetermined overhead rate is based on labor hours what is the total amount applied to the plant wide overhead account for the year for Welch?
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