Question

Carlson Company uses a predetermined rate to apply overhead. At the beginning of the year, Carlson 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.

Answer 1

The estimated rate based on labour hour==6

The actual rate based on labour hour=6.08

The rate based on machine hour=24

The rate based on machine hour= 22.66

Step-by-step explanation:

Given that Carlson estimated its overhead costs to be $240,000,direct labor hours at 40,000 and machine hours at 10,000 as well as the actual overhead costs incurred of $249,280, actual direct labor hours of 41,000, and actual machine hours of 11,000.We can calculate the to apply .

The estimated rate based on labour hour=240000/40000=6

The actual rate based on labour hour=249280/41000=6.08

The rate based on machine hour=240000/10000=24

The rate based on machine hour=249280/11000=22.66