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at the end of the construction year for his business, Lee's uncle Anthony is having trouble dealing with the company's indirect costs as there are
at the end of the construction year for his business, Lee's uncle Anthony is having trouble dealing with the company's indirect costs as there are just so many of them. Th help his uncle, Lee listed a few examples of wha he thought would be indirect cost for the company: glue, nails, staples, drywall compound, and tape. anthony then added supervisor cost, as well as deprection of the construction trucks, generators, saws and other equipment, to the list. unfortunately, the total of these MOH costs, 536,000, significantly axceeded Athony's budgeted MOH of 456,980. lee wondered if his uncle should consider a different allocation base, since this construction business is both labor intensive and material intensive. anthony agrees and determines that total dm costs incurred for the jobs worked on this year amounted to 1,241,000.00. at the beginning of the year, anthony's budgeted dm costs were 913960.00. determin what the budgeted moh rate would hve been if anthony had used direct material cost as the cost driver. futher determine applied moh and under and over applied moh for the scenario
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