Question: The fixed overhead absorption rate 9000/3000 machine hours = Shs. 3 per machine hour. The actual activity level of 3000 machine hours is the same

The fixed overhead absorption rate 9000/3000 machine hours = Shs. 3 per machine hour.

The actual activity level of 3000 machine hours is the same as that budgeted. The over absorption of fixed overhead is therefore due to expenditure factors. It may have occurred because of the combination of

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Birlea Ltd Birlea produces three types of bird feeder called Ground, Window and Seed. It is preparing its budget for the month of December based on the following information. Budgeted sales Ground...

Saved HW CH10 Part2 The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: 1 1 Machine Hours Cost Formula (per machine hour) $ 1.30 7,eee 8,000 9,eee Overhead...

Please do asap Sancho Limited makes three types of earrings, Exe, Wye and Zed. A traditional product costing system is used at present; although an activity based costing (ABC) system is being...

Please show all workings / formulas Sancho Limited makes three types of earrings, Exe, Wye and Zed. A traditional product costing system is used at present; although an activity based costing (ABC)...

What is the fixed overhead spending (price) variance? Actual machine hours 1,160 Standard machine hours allowed 1,310 Denominator activity (machine hours) 1,450 Actual fixed overhead costs $ 16,560...

Cartright Ltd makes three types of hairdryers - The Diva (D), the Classic ( C) and the Poser (P). A traditional product costing system is used at present: although an activity-based costing system...

Oxnard Company uses a volume-based costing system that applies overhead cost based on machine hours at $26 per machine hour. The company is considering adopting an activity-based costing system with...

Also with this information can you please help me find: The difference in total cost between ABC and the volume-based costing system for Job Y is: and Using ABC, the cost per unit for Job Z is:...

17 6 pts Oxnard Company uses a volume-based costing system that applies overhead cost based on machine hours at $32 per machine hour. The company is considering adopting an activity-based costing...

You are a department head in a mid-sized clothing manufacturing firm in a time of high unemployment. Your manager is always worrying about the bottom line and cash flow. She has asked you, as...

The bookkeeper for Brooks Equipment Repair made a number of errors in journalizing and posting, as described below. 1. A credit posting of $450 to Accounts Receivable was omitted. 2. A debit posting...

1 0 . Steel Flood Inc. pays its workers every Friday. December 3 1 st of the year falls on Wednesday. The adjusting entry Steel Flood will need to make at the end of the year will contain: A ) Debit...

Read the following scenario - this is the same scenario you will use to write your Short Analytical Report. Scenario: You are the director of training for an aerospace firm located in Seattle. Your...

Mortality rate

Armed conflicts.

Take responsibility for the other persons or others experience of the situation.