Tub-Tubs Tub Co. uses predetermined overhead rates to allocate manufacturing overhead to various jobs. The allocation base is machine hours. The following data is for 2016:
Direct materials $ 710,000 $ 682,000
Direct labor hours 37,000 35,000
Direct labor cost $ 621,000 $ 547,000
Machine hours 125,000 132,000
Manufacturing overhead $ 890,000 $ 958,000
? Compute the firms predetermined overhead rate.
? For 2016, was overhead over- or under-applied and by how much?
? For 2016, what amount was recorded to Work-in-Process for manufacturing overhead?