Question

True or False Direct Material Ant X G calculator - Google Search X st of goods sold for Augu: X C 1906481/quizzes/4877320/take > Question 12 4 pts Cacioppo Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 66,000 labor-hours. The estimated variable manufacturing overhead was $7.45 per labor-hour and the estimated total fixed manufacturing overhead was $1,760,220. The actual labor-hours for the year turned out to be 63,800 labor-hours and actual overhead was 2,196,500. What is the over/under applied overhead? 19644 under applied none are correct 19644 over applied Question 13 4 pts direct material and direct labor are called conversion costs True . False

Answer 1

Answer:

1. Total Actual Manufacturing cost = 2196500

Estimated overhead variable cost = 63800 * 7.45 = 475310

Estimated fixed cost = 1760220

Total estimated cost = 2235530

Variance = Estimated - Actual = 2235530 - 2196500

= 39030 (favourable)

Option B is correct i.e. none of the option.

2. It is true that direct material and direct labour are called coversion cost

Explanation: Conversion cost include direct labour and overhead cost incurred due to the transformation of raw material into finished products.

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