Budgeted Fixed OH $125,000 Budgeted production 50,000 units &n
Budgeted Fixed OH $125,000
Budgeted production 50,000 units
Budgeted dl-hours 62,500 dl-hours
Actual production 52,000 units
Actual dl-hours 78,000 dl-hours
Calculate Predetermined rate based upon unit production:
- Fixed OH:___________________________________
If actual Fixed OH is $150,000, is Fixed OH over- or under-applied? If so, by how much?
What if actual Fixed OH is $100,000?
b. ________________________________________
Calculate Predetermined rate based upon dl-hours:
- Fixed OH:___________________________________
- Using normal costing, if actual Fixed OH is $150,000, is Fixed OH over- or under-applied? If so, by how much? What if actual Fixed OH is $100,000?________________________________________
Homework Answers
Predetermined rate = Budgeted Overheads/Budgeted Units
= 125000/50,000
= $2.5 per unit
Applied overheads = Predetermined rate*Actual units
= 2.5*52000
= $130,000
Underapplied by $150,000-130,000 = $20,000
Overapplied by $30,000
Using DLH, rate = 125000/62500
= $2 per hour
Applied = 2*78000
= $156000
Over applied by $6000
Overapplied by $56,000
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