Why do companies uses predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to
Question:
Why do companies uses predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (10 reviews)
If actual manufacturing overhead cost is applied to jobs the company must wait until t...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Question Posted:
Students also viewed these Managerial Accounting questions
-
Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs?
-
Cedar Company uses predetermined overhead rates in assigning manufacturing overhead costs to jobs. The rates are based on machine hours in the machining department and on direct labor hours in the...
-
Why do companies apply overhead to jobs using a predetermined (budgeted) overhead rate instead of applying actual overhead to jobs?
-
Use c program to solve this. Problem B [10 marks] Write a program to calculate age (birth date and current date will be entered by user). Make a structure named Date to store the elements day, month...
-
Volker (2006) analyzed methods and approaches for reporting effect size in psychological research. In his assessment of estimates for effect size using the chi-square test, he wrote, Given that...
-
1. Justin believes the company should use the extra cash to pay a special one-time dividend. How will this proposal affect the stock price? How will it affect the value of the company? 2. Suzanne...
-
If the analysis of variance F-test leads to the conclusion that at least one of the model parameters is nonzero, can you conclude that the model is the best predictor for the dependent variable y?...
-
A variation of the indicator dilution method (see preceding problem) is used to measure total blood volume. A known amount of a tracer is injected into the bloodstream and disperses uniformly...
-
4. Dividing actual demand by the model's forecast yield an index that can be used to adjust for in the data. Seasonality Trend Randomness Cycle
-
Explain some of the different aspects of the customer experience that could be managed to improve customer satisfaction if you were the marketing manager for: (a) An airport branch of a rental car...
-
Explain why some production costs most be assigned to products through an allocation process?
-
What factors should be considered in selecting a base to be used in computing the predetermined overhead rate?
-
A heat exchanger is to be designed to heat raw water by the use of condensed water at \(67{ }^{\circ} \mathrm{C}\) and \(0.2 \mathrm{bar}\), which will flow in the shell side with a mass flow rate of...
-
n1 = 15, n2 = 18, S = 280, H1: m1 > m2. Exercises 57 present sample sizes and the sum of ranks for the rank-sum test. Compute S, S, and the value of the test statistic z. Then find the P-value.
-
n1 = 25, n2 = 32, S = 850, H1: m1 m2. Exercises 57 present sample sizes and the sum of ranks for the rank-sum test. Compute S, S, and the value of the test statistic z. Then find the P-value.
-
Evaluate the matrix element $\left\langle j_{1} j_{2} J\left|T_{k q}(1) ight| j_{1}^{\prime} j_{2}^{\prime} J^{\prime} ightangle$, where the tensor operator $T_{k q}(1)$ operates only on the part of...
-
Mark Gold opened Gold Roofing Service on April 1. Transactions for April are as follows: 1 Gold contributed \(\$ 15,000\) of his personal funds in exchange for common stock to begin the business. 2...
-
n1 = 20, n2 = 30, S = 400, H1: m1 < m2. Exercises 57 present sample sizes and the sum of ranks for the rank-sum test. Compute S, S, and the value of the test statistic z. Then find the P-value.
-
An interest rate is quoted as 5% per annum with semiannual compounding. What is the equivalent rate with (a) annual compounding, (b) monthly compounding, and (c) continuous compounding.
-
Find the equation of the plane passing through the points P 5,4,3 ,Q 4,3,1 and R 1,5,4
-
a. Differences in status and power mean the psychological contract is always balanced in favour of the organisation. Managers will expect individuals to display loyalty and commitment, put in extra...
-
When the absorption costing approach to cost-plus pricing is used, what is the markup supposed to cover?
-
What assumption does the absorption costing approach make about how consumers react to prices?
-
Discuss the following statement: Full cost can be viewed as a floor of protection. If a company always sets its prices above full cost, it will never have to worry about operating at a loss?
-
How to solve them..equation and explain ..please.. 1. Selected information from the companys financial records is presented below Equipment, December 31, 2013 $300,000 Equipment, December 31, 2014...
-
During 2024, its first year of operations, Hollis Industries recorded sales of $11,900,000 and experienced returns of $760,000. Cost of goods sold totaled $7,140,000 (60% of sales). The company...
-
What is the value of a 15% coupon bond with 11% return? Is it a discount or a premium bond?
Study smarter with the SolutionInn App