Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980.

The overhead for the year was:

a.$702 underapplied

b.$898 underapplied

c.$702 overapplied

d.$898 overapplied

d.$898 overapplied

Explanation:

Overheads are applied using predetermined overhead rate, which is calculated using estimated overhead and estimated activity on which overheads are applied.

As per given data

Estimated overhead = $210,600

Estimated direct labor hour = 6,000 direct labor hours

Predetermined overhead rate = $210,000 / 6,000 = $35.1

Applied overhead = Predetermined overhead rate x Actual direct labor hours

Applied overhead = $35.1 x 5,980 hours = $209,898

Under / Over applied overhead = Actual overhead - Applied overhead

Under / Over applied overhead = $209,000 - 209,898 = -$898

The overhead is over applied by $898

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know