Answered step by step
Verified Expert Solution
Question
1 Approved Answer
We use manufacturing overhead rate= manufacturing overhead cost/manufacturing labor or machine hour formula. But here when we do 39000000/3000000=0.30 we get 0.30 but we take
We use manufacturing overhead rate= manufacturing overhead cost/manufacturing labor or machine hour formula. But here when we do 39000000/3000000=0.30 we get 0.30 but we take it 130%. Why? how can i decide it?
\begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Particulars } & MachiningDepartment & AssemblyDepartment \\ \hline Budgeted manufacturing overheads (a) & $1,800,000 & $3,900,000 \\ \hline Budgeted machine hours (b) & 50,000 & \\ \hline Budgeted manufacturing labor cost (c) & & $3,000,000 \\ \hline Budgeted manufacturing overhead rate (a/b, a/c) & $36.00 & 130% \\ \hline \end{tabular}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