Is an actual overhead application rate better than a predetermined overhead rate? Why or why not?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
Yes the actual overhead is better than the predetermined overhead rate because ...View the full answer
Answered By
Rukhsar Ansari
I am professional Chartered accountant and hold Master degree in commerce. Number crunching is my favorite thing. I have teaching experience of various subjects both online and offline. I am online tutor on various online platform.
5.00+
4+ Reviews
17+ Question Solved
Related Book For
Cost Accounting Traditions and Innovations
ISBN: 978-0324026450
4th edition
Authors: Barfield Jesse, Raiborn Cecily, Kinney Michael
Question Posted:
Students also viewed these Managerial Accounting questions
-
Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs?
-
Why must a company prepare a predetermined overhead rate when using job order cost accounting?
-
Why are actual overhead costs not used in determining periodic product cost?
-
1. A man digs 3 cubic feet per minute. Express the digging rate in cubic meters per hour. = ( 0 . 3 0 5 f t A ) 0 . 3 4 B ) 2 . 3 4 C ) 3 6 . 2 D ) 1 6 7 . 4 E ) 6 4 0 0 2. The x -...
-
A retail business, using the accrual method of accounting, owed merchandise creditors (accounts payable) $290,000 at the beginning of the year and $315,000 at the end of the year. How would the...
-
Suppose that the risk-free interest rate is zero. Would an American put option ever be exercised early? Explain.
-
If the sea power plant described in Problem 11.5 is to deliver power at \(\$ 8 / 10^{6} \mathrm{Btu}\), estimate the maximum permissible cost of the condenser and evaporator heat-exchanger surface in...
-
The owners of Sweet-Tooth Bakery have determined that they need to expand their facility in order to meet their increased demand for baked goods. The decision is whether to expand now with a large...
-
1. How are Michael Porter's forces defined, according to what you have observed in the video? 2. Mention and explain what Michael Porter's 5 forces are. 3. Are there companies in which Michael...
-
Martin Moreno is 42 years old, single, and works as a designer for a major architectural firm. He is well paid and over time has built up a sizable portfolio of investments. He considers himself an...
-
Which document in a job order costing system would show the amount of overtime worked by a specific individual? Explain.
-
What creates under-applied or over-applied overhead when applying overhead to jobs?
-
Elvira has found that her customers claim might very well have been discrimination. What are two arguments that Elvira could claim in order to get her off the hook? What are her choices of resolving...
-
How does the physical environment of your geographic area or location play a role in sports marketing?
-
Describe the steps in the traditional organizing drive.
-
How does Keyness concept of animal spirits differ from the concept outlined in Akerlof and Shillers writings? Are animal spirits a useful concept for designing good behavioural macroeconomic...
-
Do you think that companies should engage in investment during recessions? Explain.
-
Explain how realistic job previews (RJPs) operate. As a manager or business owner, would you use them?
-
In Problem find f(x) and simplify. f(x) = (3x 3 - 2) (x + 1)
-
The vapor pressure of the liquid NH, is measured at different temperatures. The following vapor pressure data are obtained. Temperature, K P, mmHg 217.1 223.4 234.7 588.1 Calculate the enthalpy of...
-
The manager of Blakely Company was reviewing two competing projects for the molding department. The projects represented different methods of preparing the molds for one of the company's more popular...
-
Diamante Company gathered the following data for the past two years: Required: 1. Prepare a productivity profile for each year. 2. Prepare partial income statements for each year. Calculate the total...
-
In an effort to become more competitive, Hardy Company has embarked on a program to reduce and eliminate its non-value-added activities and to improve the efficiency of its value-added activities....
-
You are planning to retire in 30 years. You want to be able to spend $40,000 per year in retirement, adjusted for inflation (so you will spend the equivalent in each year of $40,000 in today's...
-
From a lawsuit, you have been awarded a 31-payment, constant growth annuity. The first payment is at Year O and is equal to $380, and each subsequent payment will be paid in 16 month intervals, with...
-
You will receive 13 payments of $535, where the first payment will be received today (Month 0) and all other payments will be received in 10-month intervals (Months 10, 20, 30 ... 120). Assume that...
Study smarter with the SolutionInn App