Question
Jared Companys formula for annual manufacturing overhead is: Y = $150,000 + $8X, where X is direct labor hours The predicted activity for 2017 is
Jared Company’s formula for annual manufacturing overhead is:
Y = $150,000 + $8X, where X is direct labor hours
The predicted activity for 2017 is 40,000 direct labor hours and the actual activity for January of 2017 was 5,000 direct labor hours. Using a predetermined overhead rate the applied January overhead is:
a. $ 40,000
b. $ 58,750
c. $190,000
d. $208,750
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the applied overhead using the predetermined ov...
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Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
6th Edition
324559674, 978-0324559675
