Question
The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.
The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.
The following information was taken from the annual budget:
Direct labor hours84,000
Machine hours...120,000
Manufacturing costs:
Direct labor..$525,000
Direct materials..180,000
Indirect labor75,000
Electric power..48,000
Payroll taxes12,600
Machine maintenance and repair...9,200
Factory supplies...16,000
Factory heat and light..14,000
Depreciation, taxes, and insurance:
Factory buildings...135,000
Machinery..320,200
..$1,335,000
Actual results for the year follow:
Direct labor hours85,000
Machine hours...110,000
Manufacturing costs:
Direct labor$ 540,000
Direct material...200,000
Factory overhead...625,000
..$1,365,000
Determine the following factory overhead application rates under each of the following methods
Direct labor cost
Direct labor hours
Machine hours
Determine the under -or over- applied factory overhead under each of the following methods
Direct labor cost
Direct labor hours
Machine hours
The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.
The following information was taken from the annual budget:
Direct labor hours84,000
Machine hours...120,000
Manufacturing costs:
Direct labor..$525,000
Direct materials..180,000
Indirect labor75,000
Electric power..48,000
Payroll taxes12,600
Machine maintenance and repair...9,200
Factory supplies...16,000
Factory heat and light..14,000
Depreciation, taxes, and insurance:
Factory buildings...135,000
Machinery..320,200
..$1,335,000
Actual results for the year follow:
Direct labor hours85,000
Machine hours...110,000
Manufacturing costs:
Direct labor$ 540,000
Direct material...200,000
Factory overhead...625,000
..$1,365,000
Determine the following factory overhead application rates under each of the following methods
Direct labor cost
Direct labor hours
Machine hours
Determine the under -or over- applied factory overhead under each of the following methods
Direct labor cost
Direct labor hours
Machine hours
The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.
The following information was taken from the annual budget:
Direct labor hours84,000
Machine hours...120,000
Manufacturing costs:
Direct labor..$525,000
Direct materials..180,000
Indirect labor75,000
Electric power..48,000
Payroll taxes12,600
Machine maintenance and repair...9,200
Factory supplies...16,000
Factory heat and light..14,000
Depreciation, taxes, and insurance:
Factory buildings...135,000
Machinery..320,200
..$1,335,000
Actual results for the year follow:
Direct labor hours85,000
Machine hours...110,000
Manufacturing costs:
Direct labor$ 540,000
Direct material...200,000
Factory overhead...625,000
..$1,365,000
Determine the following factory overhead application rates under each of the following methods
Direct labor cost
Direct labor hours
Machine hours
Determine the under -or over- applied factory overhead under each of the following methods
Direct labor cost
Direct labor hours
Machine hours
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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
Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
