Question
How do I compute applied fixed overhead with no practical capacity? Given data: Overhead Application, Fixed and Variable Overhead Variances Chesley Company is planning to
How do I compute applied fixed overhead with no practical capacity? Given data:
Overhead Application, Fixed and Variable Overhead Variances
Chesley Company is planning to produce 2,600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.6 standard hour of labor for completion. The total budgeted overhead was $1,981,200. The total fixed overhead budgeted for the coming year is $1,326,000. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual production (units): 2560000 Actual direct labor hours (AH): 1535400 Actual variable overhead: 644100 Actual fixed overhead: 1330000 "Compute the applied fixed overhead. Round intermediate calculations to two decimal places." "Compute the applied variable overhead. Round your answer to two decimal places. $___per DLH"
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