My answer to the following homework problem is: Overapplied by $30,000. I would

Question

My answer to the following homework problem is: Overapplied by $30,000. I would like to verify its accuracy. Nice Co, uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. estimated manufacturing overhead $600,000 base on est. volume of 50,000 DLH at a direct labor rate of $6 per hour. Actual MOH amounted to $620,000, with DLH costs of $325,000. Manufactruing overhead for the year equals ????? If my answer is inaccurate please provide computations. Thanks

Explanation / Answer

Total estimated cost = Estimated MOH + DLH*Rate = 600000 +50000*6 = 900000 Total cost incurred = Actual MOH + DLH cost = 620000 + 325000 = 925000. MOH for the year = Actual MOH. ( I am not clear with th question please correct me, if I am mistaken)

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