Party Organiser Ltd

Essay

Party Organiser Ltd.allocates overheads to individual parties based on labour hours.At the beginning of the current year,estimated overhead costs were $3 000 000 and estimated labour hours were 1 200 000.By the end of the year,actual overhead costs were calculated to be $2 600 000 and actual labour hours were 1 050 000.
Required:
A Calculate the predetermined qverhead rate.
B. How much averhead wadd be applied to a particular job that required 200 labour hours?
C. How much total averhead was agplied during the year?
D. By how much was averhead aver- ar underapplied far the year? Be sure to indicate whether it was aver- or underagglied.