-730 i= The master manufacturing overhead budget for the month based on the normal productive capacity of 20,400 direct labour hours (10,200 units) shows total variable costs of $81,600 ($4.00 per labour hour) and total fixed costs of $61,200 ($3.00 per labour hour). Normal production capacity is 20,400 direct hours. Overhead is applied based on direct labour hours. Actual costs for producing 9,970 units in November were as follows: Direct materials (20,500 kg) $108,650 Direct labour (19,940 hours) 228,313 Variable overhead 79,560 Fixed overhead 60,180 Total manufacturing costs $476,703 The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
-730 i= The master manufacturing overhead budget for the month based on the normal productive capacity of 20,400 direct labour hours (10,200 units) shows total variable costs of $81,600 ($4.00 per labour hour) and total fixed costs of $61,200 ($3.00 per labour hour). Normal production capacity is 20,400 direct hours. Overhead is applied based on direct labour hours. Actual costs for producing 9,970 units in November were as follows: Direct materials (20,500 kg) $108,650 Direct labour (19,940 hours) 228,313 Variable overhead 79,560 Fixed overhead 60,180 Total manufacturing costs $476,703 The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:-730
i=
The master manufacturing overhead budget for the month based on the normal productive capacity of 20,400 direct labour hours
(10,200 units) shows total variable costs of $81,600 ($4.00 per labour hour) and total fixed costs of $61,200 ($3.00 per labour hour).
Normal production capacity is 20,400 direct hours. Overhead is applied based on direct labour hours. Actual costs for producing 9,970
units in November were as follows:
Direct materials (20,500 kg)
$108,650
Direct labour (19,940 hours)
228,313
Variable overhead
79,560
Fixed overhead
60,180
Total manufacturing costs
$476,703
The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw
materials inventories, therefore, can be ignored.
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