The manufacturing overhead budget calculates the budgeted overhead cost for the year and also the predetermined overhead allocation rate for the year.
True or False?
The statement is TRUE
The Manufacturing overhead budget calculates the budgeted overhead cost for the year and also the predetermined overhead allocation rate for the year.
Predetermined overhead allocation rate = Total estimated overhead costs / total estimated quantity
The manufacturing overhead budget calculates the budgeted overhead cost for the year and also the predetermined...
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount of the allocation base - Estimated total manufacturing overhead cost True or False True False
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total manufacturing overhead cost + Estimated total amount of the allocation base True False Thach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours fixed manufacturing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine Number of units in the job Total machine hours Direct materials Direct labor cost $ 2,880 The unit product...
Manufacturing Overhead Budget The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details conceming budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours .................. 8,000 8,200 8,500 7,800 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3 25 per direct labor-hour and its total fixed manufacturing overhead is $48.000 per quarter. The only noncash item included in...
Bluebell Manufacturing bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 1,726 direct labor-hours will be required in March. The variable overhead rate is $10.5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $17,538.7 per month, which includes depreciation of $2,600. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for March should be: Select one: a. $16...
If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used. True or False True False
Urbana Company calculates its predetermined manufacturing overhead rates using normal capacity, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Manufacturing overhead is applied using direct labor hours. The total budgeted manufacturing overhead is $3,168,000, of which $864,000 is fixed manufacturing overhead. The actual results for the year are as follows. 5. The company's variable manufacturing overhead efficiency (quantity) variance is: $24,000 F. (b) $40,000 U. $40,000 F. $24,000 U. (a) URBANA COMPANY...
Exercise 10A-2 Predetermined Overhead Rate; Overhead Variances [LO10-3, LO10-4] Norwall Company’s budgeted variable manufacturing overhead cost is $1.20 per machine-hour and its budgeted fixed manufacturing overhead is $81,744 per month. The following information is available for a recent month: The denominator activity of 31,440 machine-hours is used to compute the predetermined overhead rate. At a denominator activity of 31,440 machine-hours, the company should produce 13,100 units of product. The company’s actual operating results were: Number of units produced 14,120 Actual...
exercise 8-5 (2 parts) Exercise 8-5 Manufacturing Overhead Budget (LO8-6) The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 10,800 9,600 9,900 1,700 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $5.50 per direct labor-hour and its total fixed manufacturing overhead is $76.000 per quarter. The...
Enter the formula, then enter the amounts to calculate the budgeted manufacturing overhead rate. Budgeted manufacturing overhead rate 23 4140000 Actual direct labor-hours Actual manufacturing overhead costs Actual quantity of cost-allocation base Budgeted manufacturing overhead costs Budgeted quantity of cost-allocation base
The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,200 direct labor-hours will be required in May. The variable overhead rate is $770 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $139,680 per month, which includes depreciation of $24,850. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for May should be: Multiple Choice...