Question
II.We have the following estimated and actual data for the year 2020. Estimated Actual (Occured) Factory supervision 50,00051,000 Indirect labor115,00099,000 Inspection70,00073,000 Maintenance35,00039,000 Indirect material25,00020,000 Heat,
II.We have the following estimated and actual data for the year 2020.
Estimated Actual (Occured)
Factory supervision 50,00051,000
Indirect labor115,00099,000
Inspection70,00073,000
Maintenance35,00039,000
Indirect material25,00020,000
Heat, Light, power20,00018,000
Depreciation35,00035,000
Miscellaneous factory overhead10,0003,000
Total Factory Overhead 360.000 TL 338,000
Total Direct Labor Hours144,000 DS121,500 DS
Required:
1.Compute factory overhead application rate .
2.Determine the over- or under applied overhead forthe year.
3.Why do we need to use factory overhead application rate ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 To compute the factory overhead application rate you can use the formula Factory Overhead Applicat...
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
Cost Management
Authors: Don R Hansen, Maryanne M Mowen, Dan L Heitger
5th Edition
357141091, 978-0357141090
