Question: The Lawson Manufacturing Company has the following budgeted overhead cost

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.


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  • CreatedNovember 19, 2014
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