Question
Ethel Corporation has the following data for the year 2021: Estimated Factory Overhead $40,000 + ($2 * Machine hour rate) Estimated machine hours 5,000 Assume
Ethel Corporation has the following data for the year 2021:
Estimated Factory Overhead | $40,000 + ($2 * Machine hour rate) |
Estimated machine hours | 5,000 |
Assume that Ethel Corporation has worked on three jobs: 01; 02; and 03 last year. 1,500 machine hours were spent for Job 01; 2,000 machine hours for Job 02; and 1,700 machine hours for Job 03. The actual factory overhead is $56,000 using 5,200 machine hours.
Required:
a. What is the predetermined Factory Overhead?
b. What is the expected Factory Overhead for an actual level of activity of 5,200 machine hours?
c. What is the Factory Overhead applied to Job 03?
d What is the total under or over-applied Factory Overhead?
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