Question
The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour Actual
The following information pertains to Trenton Glass Works for the year just ended.
Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 437,000
| Actual manufacturing overhead: | |||
| Depreciation | $ | 234,000 | |
| Property taxes | 22,000 | ||
| Indirect labor | 82,000 | ||
| Supervisory salaries | 202,000 | ||
| Utilities | 58,000 | ||
| Insurance | 33,000 | ||
| Rental of space | 303,000 | ||
| Indirect material (see data below) | 80,000 | ||
| Indirect material: | |||
| Beginning inventory, January 1 | 49,000 | ||
| Purchases during the year | 94,000 | ||
| Ending inventory, December 31 | 63,000 | ||
|
| |||
Exercise 3-34 Part 1
Required:
1. Compute the firms predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.)
2. Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)
Predetermined overhead rate per DLH
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Understanding Cross Cultural Management
Authors: Marie Joelle Browaeys, Roger Price
3rd Edition
1292015896, 978-1292015897
