candle pty for july 2021

Act direct labour cost 50 000

act direct lobour rate per hour 10

factory overhead rate per direct labour 15

facoty overhead oncurred 60000

management is concerned regarding the applied overhead rete used

a what are the three costs which are classified as manufatucturing overhead and justify why they are manufacturing overhead 3marks

b are there any underapplied or overapplied overhead , assuming underapplied or overapplied is transfared to cost of goods sold at the end of the period which would be the adjustment to the cost of goods acc 6marks

c

if the company had budgeted an overhead of 90 000 and 6000hrs of direct labour identify if there is a numerator and denominator reason leasing ti an underapplied or overapplied overhead for this firm 6marks