Question

Pawhuska Company estimates that its overhead costs for 2018 will be $999,000 and output in units of product will be 270,000 units.

Required

1. Calculate Pawhuska’s predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.)

2. If 26,000 units of product were made in March 2018, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations.)

3. If actual overhead costs in March were $93,200, would overhead be overapplied or underapplied and by how much? (Do not round intermediate calculations.)

a. predetermined overhead rate = ? per unit

b. allocated overhead cost

c. overhead costs

Answer 1