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The following annual data related to a manufacturer: Budgeted machine hours 15,000 Budgeted direct labour hours 30,000 Budgeted direct labour cost $420,000 Budgeted manufacturing overhead
The following annual data related to a manufacturer: Budgeted machine hours 15,000 Budgeted direct labour hours 30,000 Budgeted direct labour cost $420,000 Budgeted manufacturing overhead $600,000 During the month of June, the firm worked on three productsAlpha, Beta and Gamausing the following inputs: Alpha Beta Gama Actual machine hours 658 351 252 Actual direct labour hours 920 580 420 Actual manufacturing overhead costs for June were $40,000, and the actual direct labour rate was $22.50 per hour. Assume that the firm uses direct labour hours as its overhead cost driver. What is the difference between the actual overhead cost and the amount of overhead applied to the three products in June
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