Question
Furtado Incorporated makes a single producta cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to
Furtado Incorporated makes a single product—a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Total budgeted manufacturing overhead | $ 191,940 | |
---|---|---|
Budgeted hours | 21,000 | labor-hours |
Actual production (a) | 35,000 | units |
Standard hours per unit (b) | 0.70 | labor-hours |
Standard hours allowed for the actual production (a) × (b) | 24,500 | labor-hours |
Total actual manufacturing overhead | $ 190,874 | |
Actual hours | 23,200 | labor-hours |
The total manufacturing overhead is underapplied or overapplied by how much?
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
9th edition
125956455X, 978-1259564550
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