Crane Company produces one product, a putter called GO-Putter, Crane uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $650,000 comprised of $250,000 of variable costs and $400,000 of fixed costs. Crane applies overhead on the basis of direct labor hours.

Crane Company produces one product, a putter called GO-Putter, Crane uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $650,000 comprised of $250,000 of variable costs and $400,000 of fixed costs. Crane applies overhead on the basis of direct labor hours.

Name: Compute the predetermined variable overhead rate and the predetermine
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Description: Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimalplaces, eg. 2.75.)Predetermined Overhead Rate(b)eTextbook and MediaCompute the applied overhead for Crane for the year.Overhead Ap

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...

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Oriole Company produces one product, a putter called GO-Putter. Oriole uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 105.000 units per year. The total budgeted overhead at normal capacity is $997.500 comprised of $367,500 of variable costs and $630,000 of fixed costs. Oriole applies overhead on the basis of direct labor hours. During the current year, Oriole produced 70,100 putters, worked 96,600 direct labor hours, and incurred variable overhead costs of $233,190 and fixed overhead costs of $462.950.
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