Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. FACILITY SUSTAINING COSTS-costs relating to the organization as a whole 2. Mary Kim Ltd has budgeted $ 435,000 for manufacturing overhead for the upcoming

image text in transcribed
4. FACILITY SUSTAINING COSTS-costs relating to the organization as a whole 2. Mary Kim Ltd has budgeted $ 435,000 for manufacturing overhead for the upcoming year. It forecast that 72,500 machine hours will be used in the factory and budgeted direct labour hours were 17,400. The average direct labour rate is budgeted to be $20.Actual data for the year were: Actual Manufacturing overhead :$434,300, Actual machines hours: 73,010, Actual direct labour wage rate : $19.60, Actual direct labour hours worked : 17,630. Required: 1. Compute the budgeted manufacturing overhead rate and Actual Manufacturing Overhead rate under each of the following cost drivers :a) Direct labour hours, b) Machine hours. (8 marks) Your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions