A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Datafrom the company's flexible budget for manufacturing overhead are given below:Level of activityOverhead costs at the denominator activity level:Variable overhead cost2,950 DLHS$ 9,400$39,125Fixed overhead cost17The following data pertain to operations for the most recent period:Actual hoursStandard hours allowed for the actual outputActual total variable manufacturing overhead costActual total fixed manufacturing overhead cost3,500 DLHS2,637 DLHS$10,000$39,525What is the predetermined overhead rate to the nearest cent?

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Description: A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Datafrom the company's flexible budget for manufacturing overhead are given below:Level of activityOverhead

Overheads are those expenses which are not traceable over cost object directly. These expenses are…

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A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Level of activity Overhead costs at the denominator activity level: Variable overhead cost Fixed overhead cost 2,950 DLHS $ 9,400 $39,125 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 3,500 DLHS 2,637 DLHS $10,000 $39,525 What is the predetermined overhead rate to the nearest cent?

A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Level of activity Overhead costs at the denominator activity level: Variable overhead cost Fixed overhead cost 2,950 DLHS $ 9,400 $39,125 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 3,500 DLHS 2,637 DLHS $10,000 $39,525 What is the predetermined overhead rate to the nearest cent?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CMA: Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that...

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A manufacturing company has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity Overhead costs at the budgeted activity level: Variable overhead cost Fixed overhead cost The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost The fixed manufacturing overhead budget variance for the period is closest to: $900 F $930 U 6,400 DLHS $ 35,200 $ 70,400 6,600 DLHS 6,272 DLHS $38,400 $ 69,500 $900 U $1,150 F
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