Goal: Create an Excel spreadsheet to compute budgeted factory overhead rates and apply factory overhead to production.
Question:
Goal: Create an Excel spreadsheet to compute budgeted factory overhead rates and apply factory overhead to production. Use the results to answer questions about your findings.
Scenario: Kevin Aeronautics Company has asked you to determine its budgeted factory overhead rates. It would also like you to apply the appropriate factory overhead amounts to actual production and determine any variances. Additional background information for your spreadsheet appears in Fundamental Assignment Material 13-A1 . (Ignore data in the Fundamental Assignment Material for product M89.)
When you have completed your spreadsheet, answer the following questions:
1. What was the budgeted factory overhead rate for department A? Department B?
2. What overhead amount was distributed to department A? Was the overhead over- or underapplied? By what amount?
3. What overhead amount was distributed to department B? Was the overhead over- or underapplied? By what amount?
Step by Step Answer:
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta