Question
I know to answer A. I need to divide Budgeted FOH by each independent volume but I can not figure out how to calculate the
I know to answer A. I need to divide Budgeted FOH by each independent volume but I can not figure out how to calculate the budgeted FOH. PLEASE HELP
The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.
The following information was taken from the annual budget:
Direct Labor cost: 480,000
Direct Labor hours: 144,000
Machine Hours: 100,000
Manufacturing costs:
Direct Materials 200,000
Direct Labor 480,000
Indirect Labor 100,000
Electric Power 40,000
Payroll Taxes 22,800
Machine maintenance and repair 15,200
Factory Supplies 6,000
Factory heat and light 4,000
Depreciation, taxes and insurance:
Factory Buildings 130,000
Machinery 402,000
1,400,000
Determine the following factory overhead application rates:
Direct Labor Cost
Direct Machine Hours
Machine Hours
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started