Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

World Company expects to operate at 60% of its productive capacity of 19,000 units per month. At this planned level, the company expects to use

image text in transcribed
World Company expects to operate at 60% of its productive capacity of 19,000 units per month. At this planned level, the company expects to use 4,845 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.425 direct labor hours per unit. At the 60% capacity level, the total budgeted cost includes $19,380 fixed overhead cost and $92,055 variable overhead cost. In the current month, the company incurred $87,020 actual overhead and 875 actual labor hours while producing 1,800 units. (Do not round Intermediate calculations. Round "OH costs per DL hour" to 2 decimal places.) (1) Compute the predetermined standard overhead rate for total overhead. Predetermined OH rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total overhead variance. Actual production 1,800 units - Standard Overhead DL Hours costs applied Variance Fav./Unf. results Variable overhead costs Fixed overhead costs Total overhead costs

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

New Perspectives In Accounting Ethics

Authors: Emerald Group Publishing Limited

23rd Edition

1785608673, 9781785608674

More Books

Students also viewed these Accounting questions