I need help answering this part of the question. Rest of problem completed. Please see below. Thanks
In addition to the four parts of this problem which will be completed in Connect, The you must state "what appears to be the major disadvantage of using normal activity rather than expected actual activity as a denominator in computing the predetermined overhead rate?" Write a 500 word evaluation discussing this matter and further answering the advantages you see which offset the disadvantages. The paper must be grammatically correct and use proper APA Morton Company's budgeted variable manufacturing overhead is $3.00 per direct labor-hour and its budgeted fixed manufacturing overhead is $300,000 per year. The company manufactures a single product whose standard direct labor-hours per unit is 2.0 hours. The standard direct labor wage rate is $20 per hour. The standards also allow 3 feet of raw material per unit at a standard cost of $4 per foot. Although normal activity is 40,000 direct labor-hours each year, the company expects to operate at a 30,000-hour level of activity this year. Required: 1. Assume that the company chooses 30,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. 2. Assume that the company chooses 40,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. 3. Complete two standard cost cards for 30,000 & 40,000 DLHS. 4. Assume that the company actually produces 17,000 units and works 37,000 direct labor-hours during the year. Actual manufacturing overhead costs for the year are: Variable manufacturing overhead cost Fixed manufacturing overhead cost Total manufacturing overhead cost $ 112,500 301,500 $ 414,000 a. Compute the standard direct labor-hours allowed for this year's production. b. Complete the Manufacturing Overhead T-account below. Assume that the company uses 30,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in (1) above. C. Assume that the company uses 30,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in requirement (1). Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Req 4A Req 4B Req 4C Assume that the company chooses 30,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) $ 13.00 Predetermined overhead rate Variable element $ 3.00 $ 10.00 per DLH per DLH per DLH Fixed element Reg 1 Req2 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 Req 4A Req 4B Req 4C Assume that the company chooses 40,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate lc 10 $ 10.50 $ 3.00 per DLH Peru Variable element Fixed element $ 7.50 BiH Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4A Req 4B Req 4C Complete two standard cost cards Complete two standard cost cards for 30,000 & 40,000 DLHs. (Round your answers to 2 decimal places.) Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Denominator Activity: 30,000 40,000 DLHs DLHs 12.00 12.00 40.00 40.00 6.00 6.00 L 20.00 15.00 $ 78.00 $ 73.00 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4A Req 4B Req 4C Compute the standard direct labor-hours allowed for this year's production. Standard hours allowed for this year's production 34,000 In addition to the four parts of this problem which will be completed in Connect, The you must state "what appears to be the major disadvantage of using normal activity rather than expected actual activity as a denominator in computing the predetermined overhead rate?" Write a 500 word evaluation discussing this matter and further answering the advantages you see which offset the disadvantages. The paper must be grammatically correct and use proper APA Morton Company's budgeted variable manufacturing overhead is $3.00 per direct labor-hour and its budgeted fixed manufacturing overhead is $300,000 per year. The company manufactures a single product whose standard direct labor-hours per unit is 2.0 hours. The standard direct labor wage rate is $20 per hour. The standards also allow 3 feet of raw material per unit at a standard cost of $4 per foot. Although normal activity is 40,000 direct labor-hours each year, the company expects to operate at a 30,000-hour level of activity this year. Required: 1. Assume that the company chooses 30,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. 2. Assume that the company chooses 40,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. 3. Complete two standard cost cards for 30,000 & 40,000 DLHS. 4. Assume that the company actually produces 17,000 units and works 37,000 direct labor-hours during the year. Actual manufacturing overhead costs for the year are: Variable manufacturing overhead cost Fixed manufacturing overhead cost Total manufacturing overhead cost $ 112,500 301,500 $ 414,000 a. Compute the standard direct labor-hours allowed for this year's production. b. Complete the Manufacturing Overhead T-account below. Assume that the company uses 30,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in (1) above. C. Assume that the company uses 30,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in requirement (1). Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Req 4A Req 4B Req 4C Assume that the company chooses 30,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) $ 13.00 Predetermined overhead rate Variable element $ 3.00 $ 10.00 per DLH per DLH per DLH Fixed element Reg 1 Req2 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 Req 4A Req 4B Req 4C Assume that the company chooses 40,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate lc 10 $ 10.50 $ 3.00 per DLH Peru Variable element Fixed element $ 7.50 BiH Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4A Req 4B Req 4C Complete two standard cost cards Complete two standard cost cards for 30,000 & 40,000 DLHs. (Round your answers to 2 decimal places.) Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Denominator Activity: 30,000 40,000 DLHs DLHs 12.00 12.00 40.00 40.00 6.00 6.00 L 20.00 15.00 $ 78.00 $ 73.00 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4A Req 4B Req 4C Compute the standard direct labor-hours allowed for this year's production. Standard hours allowed for this year's production 34,000
