II.We have the following estimated and actual data for the year 2020. Estimated Actual (Occured) Factory supervision
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Question:
II.We have the following estimated and actual data for the year 2020.
Estimated Actual (Occured)
Factory supervision 50,00051,000
Indirect labor115,00099,000
Inspection70,00073,000
Maintenance35,00039,000
Indirect material25,00020,000
Heat, Light, power20,00018,000
Depreciation35,00035,000
Miscellaneous factory overhead10,0003,000
Total Factory Overhead 360.000 TL 338,000
Total Direct Labor Hours144,000 DS121,500 DS
Required:
1.Compute factory overhead application rate .
2.Determine the over- or under applied overhead forthe year.
3.Why do we need to use factory overhead application rate ?
Expert Answer:
1 To compute the factory overhead application rate you can use the formula Factory Overhead Applicat... View the full answer
Related Book For 
Cost Management
ISBN: 978-0357141090
5th Edition
Authors: Don R Hansen, Maryanne M Mowen, Dan L Heitger
Posted Date:
