2. Provide two reasons why overhead might be under-applied in a given year.
The method of applying overhead to jobs using a predetermined overhead rate assumes that actual overhead costs will be proportional to the actual amount of the allocation base incurred during the period.
Overhead is said to be under-applied when the actual manufacturing overhead incurred exceeds the overhead applied.
Two reasons why overhead might be under-applied in a given year:
a. Manufacturing inefficiencies resulting in actual overhead costs exceeding applied overhead costs.
b. The estimation of total manufacturing overhead costs at the beginning of the period was incorrect, i.e the amount was underestimated.
2. Provide two reasons why overhead might be under-applied in a given year.
Provide two reasons in detail why overhead might be underapplied in a given year.
1. Provide two reasons why cost flow assumptions should be eliminated in modern times 2. Provide two reasons why this method should continue
What are two reasons why somebody might commit scientific misconduct?
Provide two reasons why states and local governments may want to maintain their contrasting fiscal year; Name one budget decision made on the state or federal level that you disagreed with and explain why. Why do you think the legislature made the decision they did?
In a cost accounting system, why will factory overhead always be either over applied or under applied before adjustments at the accounting period?
A firm uses direct labour-hours to apply overhead to products. Overhead was under-applied for the year by $36899. The actual manufacturing overhead for the year was $111493. The budgeted manufacturing overhead was $138421 and budgeted labour-hours were 6779. Direct labour is paid at the rate of $21 per hour. What was the total direct labour cost for the year? Select one: a. $76716 b. $114665 c. $152614 d. $142359 Lager Ltd.’s production volume and per unit information for the year...
Why does the "Under- or Over- applied Manufacturing Overhead" cost have to be adjusted? Please explain your reasoning?
Dember Chem 203 Exam 2 corne Give two reasons why real gases might deviate from the ideal gas law? (Hint: think about the assumptions we made to derive the kinetic-molecular theory of gases) (4 pts.)
From the e-Activity, analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low. Determine whether or not changes in the cost of capital could ever cause a change in the internal rate of return (IRR) ranking of two (2) projects.
Why is Kevlar a stronger fabric then dacron? Provide two reasons involving structures.