Mary Kim Ltd has budgeted $ 435,000 for manufacturing overhead for the upcoming year. It forecast that
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Question:
Mary Kim Ltd has budgeted $ 435,000 for manufacturing overhead for the upcoming year. It forecast that 72,500 machine hours will be used in the factory and budgeted direct labour hours were 17,000. The average direct labour rate is budgeted to be $20. Actual data for the year were: Actual Manufacturing overhead :$434,300,
Actual machines hours: 73,010,
Actual direct labour wage rate : $19.60,
Actual direct labour hours worked : 17,630.
Required:
Compute the budgeted manufacturing overhead rate and Actual Manufacturing Overhead rate under each of the following cost drivers :
a) Direct labour hours,
b) Machine hours.
Related Book For
Organic Chemistry
ISBN: 978-1118133576
11th edition
Authors: Graham Solomons, Craig Fryhle, Scott Snyder
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