Beaver Company used a predetermined overhead rate last year

Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour based on an estimate of 25,000 direct labour hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred Actual direct labour hours worked $47,000 24,000 What was the under- or overapplied overhead last year?- O $1,000 under applied. O $1,000 over applied. O $2,000 under applied. O $3,000 over applied. QUESTION 22 Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows: Estimated Expected Activity Activity Cost PoolCost Product A Product B Total 6001,100 300 1,900 420 860 $18,271 $35,891 $48,796 600 1,600 440 Activity 1 The activity rate for Activity 3 is closest to: O$119.72 $116.18 $26.67

Solution

21) Overhead applied = 24000*2 = 48000

Actual overhead = 47000

Over applied overhead = 48000-47000 = 1000

So answer is b) $1000 Over applied

22) Activity 3 rate = 48796/860 = 56.74

So answer is d) $56.74