Question: Dead Eye Putters manufactures golf putters in three models P450

Dead Eye Putters manufactures golf putters in three models: P450, Q550, and R650. Manufacturing overhead is assigned to each putter model using a predetermined overhead rate and the direct labor hours actually used in manufacturing each putter model. The firm calculates the overhead rate before the year begins using a flexible budget. Budgeted volume is measured using direct labor hours. The following data summarize the budgeted and actual production for the fiscal year:

After the fiscal year ends, Dead Eye Putters reports $ 884,713 under absorbed overhead and actual overhead incurred of $ 25,875,026. Variable overhead was budgeted to be $ 3.50 per direct labor hour.

a. Compute Dead Eye Putter’s manufacturing overhead rate used during the year.
b. What budgeted fixed overhead did Dead Eye Putters use in computing its manufacturing overhead rate for theyear?
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  • CreatedDecember 15, 2014
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