Calculate saturns predetermined overhead rate


Saturn, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $7,500,000 and total direct labor hours to be 125,000 hours. Calculate Saturn's predetermined overhead rate. In April, Saturn incurred actual overhead costs of $1,375,000 and used 24,000 hours. How much was Saturn's over- or underapplied overhead for the month of April?

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Accounting Basics: Calculate saturns predetermined overhead rate
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