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During an accounting period, job costs are computed on an ongoing basis by the use of actual allocation rates underallocated indirect-cost rates overallocated indirect-cost rates
During an accounting period, job costs are computed on an ongoing basis by the use of actual allocation rates underallocated indirect-cost rates overallocated indirect-cost rates budgeted indirect-cost rates Trintal Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Number of Product Setups Components Direct Labor Hours Standard 15 10 750 Deluxe 35 15.500 Overhead costs $16,500 $23,500 Assume a traditional costing system applies the $40,000 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the deluxe model? w $15,000 (525,000 $24,000 $16.000 Extracts from cost information of Hebar Corp.: Simple Complex L7 Total L3 Pack Pack $18,750 $6,250 $25,000 Setup cost allocated using direct labor-hours Setup cost allocated using setup-hours $13,200 $11,800 $25,000 Which of the following statement is true of Hebar's setup costs under traditiona costing? L3 pack is overcosted by 55.550 L7 pack is overcosted by $5,550 L3 pack is undercosted by $5,550 L7 pack is undercosted by 55.450
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