Question: 1 winc pty ltd bases its predetermined overhead rate on...
1. Winc Pty Ltd bases its predetermined overhead rate on direct labour hours. Estimates and actual results for 2020 are shown below: Estimated overhead $150,000 Actual overhead $110,000 Estimated direct labour hours 30,000 Actual direct labour hours 20,500 Actual direct labour cost 60,000
a) What is the predetermined overhead rate?
b) How much overhead would have been applied by Winc Pty Ltd to Work in Process during 2020?
c) What is the amount of underapplied or overapplied overhead at the end of 2020 for Winc Pty Ltd?