Millison Manufacturing uses a normal costing system. Budgeted overhead for the coming year is $27,000,000. Expected actual
Fantastic news! We've Found the answer you've been seeking!
Question:
Millison Manufacturing uses a normal costing system.
Budgeted overhead for the coming year is $27,000,000.
Expected actual activity is 90,000 direct labor hours.
During the year, Millison worked a total of 91,000 direct labor hours and actual overhead totaled $27,200,000.
Required
1. Compute the predetermined overhead rate for Millison Manufacturing.
2. Compute the applied overhead.
3. Compute the overhead variance, and label the variance as underapplied or over-applied overhead.
4. Explain why predetermined rates are used.
Related Book For
Posted Date: