Question 4A production department has a budgeted production overheads of $180,000 and budgeted activity of45,000 machine hours. Overheads are absorbed on a machine hour basis.RequiredCalculate the under-/over-absorbed overhead, and note the reasons for the under-/over-absorption in thefollowing circumstances.(a)Actual overheads cost $170,000 and 45,000 machine hours were worked.(b)Actual overheads cost $180,000 and 40,000 machine hours were worked.(c)Actual overheads cost $170,000 and 40,000 machine hours were worked.

Name: Question 4A production department has a budgeted production overheads
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Description: Question 4A production department has a budgeted production overheads of $180,000 and budgeted activity of45,000 machine hours. Overheads are absorbed on a machine hour basis.RequiredCalculate the under-/over-absorbed overhead, and note the reasons

The overheads are said to be overapplied, if applied overheads are more than the actual overheads.

Business

Accounting

A production department has a budgeted production overheads of $180,000 and budgeted activity of 45,000 machine hours. Overheads are absorbed on a machine hour basis. Required Calculate the under-lover-absorbed overhead, and note the reasons for the under-/lover-absorption in the following circumstances. (a) Actual overheads cost $170,000 and 45,000 machine hours were worked. (b) Actual overheads cost $180,000 and 40,000 machine hours were worked. (c) Actual overheads cost $170,000 and 40,000 machine hours were worked.

A production department has a budgeted production overheads of $180,000 and budgeted activity of 45,000 machine hours. Overheads are absorbed on a machine hour basis. Required Calculate the under-lover-absorbed overhead, and note the reasons for the under-/lover-absorption in the following circumstances. (a) Actual overheads cost $170,000 and 45,000 machine hours were worked. (b) Actual overheads cost $180,000 and 40,000 machine hours were worked. (c) Actual overheads cost $170,000 and 40,000 machine hours were worked.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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