Units = Total overhead/Overhead rate per unit
If the overhead application rate is $20 per unit, units forecast to apply $250,000 in overhead = 250,000/20
= 12,500
Hence, correct option is (b)
If the overhead application rate is $20 per unit how many units are forecast to apply...
In the graph below, the price of capital is $500 per unit. How many units of labor should a firm use in order to produce 30,000 units of output at the lowest possible cost? 300 units of labor 320 units of labor 500 units of labor 800 units of labor none of the above Units of op - 50.000 Q - 30,000 Q-10,000 350 500 800 1.100 Ints of in
Predetermined Overhead Application Rate (POHAR) = Estimated total Annual Overhead Costs/ Estimated total Annual overhead application base. The application the allocation base has traditionally been Direct Labor hours or Machine hours. For example, the formula above can be translated into numbers as $3,000,000/ 300,000 = $10 per Direct labor hour. This formula is interpreted as follows: A product or a service will be charged overhead cost at the rate of $10 for each direct labor hour that the product or...
1) Parsons Co. uses a predetermined overhead rate based on direct labor hours to apply MOH to jobs. Last year, Parsons incurred $250,000 in actual manufacturing overhead cost. The MOH account showed that overhead was over applied in the amount of $12,000 for the year. If the predetermined overhead rate was $8.00 per direct labor hour, how many hours were worked during the year? 31,250 hours c. 32,750 hours 30,250 hours d. 29,750 hours 2) Snappy Company has a job-order cost system and uses...
eBook Show Me How Calculator 10,000 Units produced Units sold ($60 per unit) Variable costs per unit: 8,800 Direct materials Direct labor Variable overhead $12 $7 $5 Fixed costs: Fixed overhead per unit produced Fixed selling and administrative $8 $138,000 Required 1. Calculate the cost of goods sold under variable costing. Feedback Y Chack My Work Determine per-unit cost under variable costing and apply the unit cost to the number Cost of Goods Sold Units sold x Unit cost Check...
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,500 9,500 11,500 12,500 Each unit requires 0.30 direct labor-hours and direct laborers are paid $12.50 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $85,000 per quarter. The only noncash element of manufacturing overhead...
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 10,500 9,500 11,500 12,500 Each unit requires 0.30 direct labor-hours and direct laborers are paid $12.50 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $85,000 per quarter. The only noncash element of manufacturing overhead...
8) If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? 9) If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 10) If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 11) If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What...
During March 2019, Alaska Corporation recorded $245,000 of costs related to factory overhead. Alaska's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $250,000 would be incurred, and 12,500 direct labor hours would be worked. During March, 13,500 hours were actually worked. Use this information to determine the amount of overhead over or under applied. Enter overapplied overhead as a negative number. (round & enter any final dollar answers to the nearest whole dollar)
During March 2019, Alaska Corporation recorded $269,000 of costs related to factory overhead. Alaska's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $250,000 would be incurred, and 12,500 direct labor hours would be worked. During March, 12,000 hours were actually worked. Use this information to determine the amount of overhead over or under applied. Enter overapplied overhead as a negative number. (round & enter any final dollar answers to the nearest whole dollar)
MA Company uses a standard cost system in which manufacturing overhead costs are applied to units of the company's single product on the basis of direct laborhours (DLHs). The cost information for the product is as follows: Standard Cost per unit of product: Direct Materials, 2 metres at $4 per metre ....................................... $ 8 Direct Labor, 2 DLHs at $10 per DLH .................................................. $20 Variable Manufacturing Overhead, 2 DLHs at $2 per DLH ............ $ 4 Fixed ManufacturingOverhead, 2 DLHs...