The Lawson Manufacturing Company has the following budgeted overhead cost and other data for its assembly department for the month of April:
Budgeted Data:
Indirect labor and supplies .. $170,000
Factory rent ......... $ 52,000
Supervision ......... $ 67,000
Depreciation on equipment . $216,000
Cost-allocation base for overhead application Direct-labor hours
Total budgeted direct-labor hours 50,000
Other Data:
Total applied overhead costs for April ... $616,100
Actual overhead cost incurred during April . $577,000
Compute the budgeted factory overhead rate, actual direct-labor hours, and indicate how the difference between the actual overhead cost incurred and applied overhead would be treated on Lawson’s income statement for the month of April.

  • CreatedNovember 19, 2014
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