Armidale Sisters is debating the use of direct labor (DL) cost or direct labor (DL) hours...
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Armidale Sisters is debating the use of direct labor (DL) cost or direct labor (DL) hours as the cost allocation base for allocating manufacturing overhead costs. The following information is available for the year ended December 31, 2020: $437,500 Estimated direct labor cost Actual direct labor cost $447,000 $350,000 Estimated manufacturing overhead costs Actual manufacturing overhead (MOH) $338,000 costs Estimated direct labor hours Actual direct labor hours 25,000 24,200 Work out the following: a) Predetermined budgeted MOH rate using direct labor cost as the allocation base b) Predetermined budgeted MOH rate using direct labor hours as the allocation base c) Allocated MOH based on direct labor cost d) Allocated MOH based on direct labor hours Armidale Sisters is debating the use of direct labor (DL) cost or direct labor (DL) hours as the cost allocation base for allocating manufacturing overhead costs. The following information is available for the year ended December 31, 2020: $437,500 Estimated direct labor cost Actual direct labor cost $447,000 $350,000 Estimated manufacturing overhead costs Actual manufacturing overhead (MOH) $338,000 costs Estimated direct labor hours Actual direct labor hours 25,000 24,200 Work out the following: a) Predetermined budgeted MOH rate using direct labor cost as the allocation base b) Predetermined budgeted MOH rate using direct labor hours as the allocation base c) Allocated MOH based on direct labor cost d) Allocated MOH based on direct labor hours
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Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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