2024 – Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year,… – 2024

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 49,000 actual direct labor-hours and incurred $658,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 47,000 direct labor-hours during the year and incur $611,000 of manufacturing overhead cost.

 underapplied by $21,000

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