Nerfyguns manufactures and sell battery-powered guns that shoot soft pelts retailing for prices ranging from $6 to
Question:
a. Calculate the firm wide overhead rate for the year.
b. A batch of 1,000 rifles was produced in March that incurred $145 of direct labor and $1,650 of direct materials. How much overhead is absorbed by this batch of rifles produced in March.
c. Actual overhead incurred during the year was $23,586,000. Calculate the amount of over or under absorbed overhead for the year.
d. NerfyGuns writes off any over/underabsorbed overhead to cost of goods sold. What is the effect on earnings based on the answer provided in letter c?
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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