The following annual data related manufacturing company for July 2022. The company produces two types of cheeses,
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Question:
The following annual data related manufacturing company for July 2022. The company produces two types of cheeses, namely, Happy cow Slices and Herbs Cheese.
Details | Budgeted | Actual | |
Slices | Herbs | ||
Machine Hrs | 22500 | 900 | 450 |
Direct Labour hrs | 45000 | 1200 | 900 |
Direct Labour Costs | 630000 | 33.75/hour | 33.75/hour |
Manufacturing Overhead cost | 819000 | 76000 | 76000 |
The company uses machine hours as the cost driver.
A. Calculate the company's predetermined plant-wide rate.
B. Estimate the overhead costs of each of the two products
C. Compare the actual overhead cost to the amount of overhead applied to the two products in July.
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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