10 Nov Gandars Associates produces carburetors for small
Gandars Associates produces carburetors for small engines and uses a normalcosting system. The following data are available for 2006:Budgeted:Overhead $4,500,000Machine hours 187,500Direct labor hours 600,000Actual:Units produced 750,000Overhead $4,466,250Prime costs $6,750,000Machine hours 187,875Direct labor hours 585,000Overhead is applied on the basis of direct labor hours.Required1. What is the predetermined overhead rate?2. What is the applied overhead for 2006?
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