Consolidate-It, Inc. produces and sells plastic drawers and containers. Standard quantities for one unit of each product follow.
Overhead is applied to production at the rate of $3 per direct labor hour. Consolidate-It expects to sell 42,000 drawers and 35,000 containers in 2010. Expected inventories at the beginning and end of the year follow.
(a) Prepare the following:
(1) The production budget for drawers and containers
(2) The purchases budget in units and dollars for plastic and dye
(3) The direct labor budget in hours and dollars
(4) The schedule of overhead to be applied to production
(b) Assume that total actual overhead at the end of 2010 was $35,400.Consolidate-It actually produced 45,000 drawers and 37,000 containers, working a total of 12,200 direct labor hours. Is overhead under-applied or over-applied at the end of 2010 and by how much?

  • CreatedMarch 27, 2015
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