QUESTION: Katherine Ltd. has the following budgeted and actual information at year end: Budgeted Actual 64,000 65,600 $185,600 $185,200 $288,000 $279,000 85,280 hrs Production (units) Total variable overhead Total fixed overhead Direct labour hours (total) Direct labour hours per unit 0.50 hrs Predetermined plantwide overhead rates are calculated using direct labour hours based on budgeted production. The company uses actual direct labour hours to assign overhead. Use the above information to answer the following questions. What is the fixed overhead application rate per direct labour hour? What is the applied fixed overhead for the year? A Compute the fixed overhead spending variance. HINT: remember the entry rules!

QUESTION: Katherine Ltd. has the following budgeted and actual information at year end: Budgeted Actual 64,000 65,600 $185,600 $185,200 $288,000 $279,000 85,280 hrs Production (units) Total variable overhead Total fixed overhead Direct labour hours (total) Direct labour hours per unit 0.50 hrs Predetermined plantwide overhead rates are calculated using direct labour hours based on budgeted production. The company uses actual direct labour hours to assign overhead. Use the above information to answer the following questions. What is the fixed overhead application rate per direct labour hour? What is the applied fixed overhead for the year? A Compute the fixed overhead spending variance. HINT: remember the entry rules!

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10P

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A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
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