Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need a clear answer please Gandars Associates produces carburetors for small engines and uses a normal costing system. The following data are available for

i need a clear answer please
image text in transcribed
Gandars Associates produces carburetors for small engines and uses a normal costing system. The following data are available for 2006: Budgeted: Overhead $4,500,000 Machine hours 187,500 Direct labor hours 600,000 Actual: Units produced 750,000 Overhead $4,466,250 Prime costs $6,750,000 Machine hours 187.875 Direct labor hours 585,000 Overhead is applied on the basis of direct labor hours. Required 1. What is the predetermined overhead rate? 2. What is the applied overhead for 2006? 3. Was overhead overapplied or underapplied, and by how much? 4. What is the unit cost for the year? Using the information from Exercise 4-3, suppose Gandars Associates applies over head to production on the basis of machine hours instead of direct labor hours. Required 1. What is the predetermined overhead rate? 2. What is the applied overhead for 2006? 3. Is overhead overapplied or underapplied, and by how much? 4. What is the unit cost? 5. How can Gandars Associates decide whether to use direct labor hours or machine hours as the basis for applying overhead

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Education

Authors: Karen Van Peursem, Elizabeth Monk, Richard M.S. Wilson, Ralph Adler

1st Edition

1138192856, 978-1138192850

More Books

Students also viewed these Accounting questions

Question

Describe the clinical practice involved in civil commitment

Answered: 1 week ago