“Crinks Corporation uses direct labor-hours for its predetermined overhead allocation rate. At the beginning of the year, the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840. At the end of the year, actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840. Overhead at the end of the year was:”,”$4,280 underappliedPredetermined overhead rate = ESTIMATED total MOH ÷ ESTIMIATED DLH $259,840 ÷ 11,200 = $23.2023.20 X 10,800 ACTUAL HOURS=250,560 *which is below the actual MOH 254,840 by 4

“Crinks Corporation uses direct labor-hours for its predetermined overhead allocation rate. At the beginning of the year, the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840. At the end of the year, actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840. Overhead at the end of the year was:”,”$4,280 underappliedPredetermined overhead rate = ESTIMATED total MOH ÷ ESTIMIATED DLH $259,840 ÷ 11,200 = $23.2023.20 X 10,800 ACTUAL HOURS=250,560 *which is below the actual MOH 254,840 by 4

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