ACCTG 225 Lecture 1: managerial accounting lecture 1
Get access
Related Documents
Related Questions
Derrald Company manufactures snowboards.Estimated costs for Year 1 were as follows:
Directlabor...........................................................................................$31,000
Bonuses paid to factorysupervisors....................................................9,000
Interestexpense.....................................................................................32,000
Depreciation on manufacturingequipment..................................... 18,000
Indirectlabor..........................................................................................11,000
Directmaterials......................................................................................36,000
Income taxexpense..............................................................................26,000
Indirectmaterials...................................................................................14,000
Property taxes on the corporate officebuilding............................... 18,000
Estimated direct labor hours were 40,000.
Actual data for Year 1 are as follows:
Total manufacturing overhead: $120,000
Direct labor hours: 60,000 hours
The predetermined manufacturing overhead rate is determined onthe basis of direct labor hours. What is the overhead rate and howmuch more or less is it then the actual overhead.
Applied overhead was MORE than actual overhead by $68,000 Applied overhead was MORE than actual overhead by $42,000 Applied overhead was LESS than actual overhead by $22,000 Applied overhead was LESS than actual overhead by $42,000 Applied overhead was LESS than actual overhead by $68,000 Applied overhead was MORE than actual overhead by $52,000 Applied overhead was MORE than actual overhead by $22,000 Applied overhead was LESS than actual overhead by $52,000 |