Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[Note) This question and the next for previous) question are based on the same data! Plimpton Company produces countertop ovens. Plimpton uses a standard costing

image text in transcribed
[Note) This question and the next for previous) question are based on the same data! Plimpton Company produces countertop ovens. Plimpton uses a standard costing system. The standard costing system relies on direct labor hours to assign overhead costs to production. The direct labor standard indicates that 4 direct labor hours should be used for every single oven produced. The annual budgeted production volume is usually 9,000 units per year. The budgeted overhead costs for the coming year are determined as follows Fixed overhead $144,000 Variable overhead $180,000 Plimpton applies overhead on the basis of direct labor hours. During the year, Plimpton produced 8,000 units, worked 32.500 direct labor hours and incurred total $295,000 of overhead costs of which $134,000 is fixed overhead Which of the following would be TRUE for the situation described above? The variable verhead costs were under appland during the year Totaltthead Variant during the year was $6.500 untavorable Total o lance during the year wars 57.000 favorite The doveted costs were over oplied during they

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

European Financial Reporting Adapting To A Changing World

Authors: J. Flower

2nd Edition

0333685180, 9780333685181

More Books

Students also viewed these Accounting questions