Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance. 0 BJ EcTIv E >|Z| Exercise 5-31 CALCULATING DEPARTMENTAL OVERHEAD RATES AND
4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance. 0 BJ EcTIv E >|Z| Exercise 5-31 CALCULATING DEPARTMENTAL OVERHEAD RATES AND APPLYING OVERHEAD TO PRODUCTION At the beginning of the year, Videosym Company estimated the following: Assembly Department Testing Department Total Overhead $620,000 $180,000 $800,000 Direct labour hours 155,000 20,000 175,000 Machine hours 80,000 120,000 200,000 Videosym uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labour hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are as follows: Assembly Department Testing Department Total Overhead $53,000 $15,500 $68,500 Direct labour hours 13,000 1,680 14,680 Machine hours 6,800 13,050 19,850 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. 2. Calculate the overhead applied to production in each department for the month of March. 3. By how much has each department's overhead been overapplied? Underapplied
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started