A business absorbs its fixed production overhead on the basis of direct labour hours. The budgeted direct
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Question:
A business absorbs its fixed production overhead on the basis of direct labour hours. The budgeted direct labour hours for the week, were 4, 200. During that week 4,050 direct labour hours were worked and the production overhead incurred was $16 700. The overhead was under-absorbed by $1 310.
REQUIRED:
1. Compute the overhead absorption rate that was used during the week.
2. Calculate the estimated production overhead for the week.
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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