Question
An accounting Firm employs 25 professional auditors. Budgeted costs total $1,200,000, of which $550,000 are indirect costs and the budgeted professional labour hours are 500,000.
An accounting Firm employs 25 professional auditors. Budgeted costs total $1,200,000, of which $550,000 are indirect costs
and the budgeted professional labour hours are 500,000.
Actual indirect costs are $600,000 and actual labour hours are 504,000.
Calculate:
- the predetermined overhead rate.
- the amount under/over absorbed.
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
