Barbara, the manager of Metlock, is analyzing the company's MOH costs from last year. Metlock had always followed an actual costing system when determining the costs of its customizable telescopes. Barbara wondered if it would be better to switch to a normal costing system, as she had heard a number of people talking about that at an industry conference she attended the previous month. Since Metlock has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Barbara is analyzing: Budgeted MOH cost Actual MOH cost Budgeted machine hours Actual machine hours (a) $426,240 Actual MOH rate $ 419,040 Determine the actual MOH rate and the budgeted MOH rate Metlock would have used last year under actual costing and normal costing, respectively. (Round answers to 2 decimal places, e.g. 52.75.) Budgeted MOH rate $ 96,0 108,000 /machine hour /machine hour
Barbara, the manager of Metlock, is analyzing the company's MOH costs from last year. Metlock had always followed an actual costing system when determining the costs of its customizable telescopes. Barbara wondered if it would be better to switch to a normal costing system, as she had heard a number of people talking about that at an industry conference she attended the previous month. Since Metlock has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Barbara is analyzing: Budgeted MOH cost Actual MOH cost Budgeted machine hours Actual machine hours (a) $426,240 Actual MOH rate $ 419,040 Determine the actual MOH rate and the budgeted MOH rate Metlock would have used last year under actual costing and normal costing, respectively. (Round answers to 2 decimal places, e.g. 52.75.) Budgeted MOH rate $ 96,0 108,000 /machine hour /machine hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Barbara, the manager of Metlock, is analyzing the company's MOH costs from last year. Metlock had always followed an actual costing
system when determining the costs of its customizable telescopes. Barbara wondered if it would be better to switch to a normal
costing system, as she had heard a number of people talking about that at an industry conference she attended the previous month.
Since Metlock has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other
MOH information Barbara is analyzing:
Budgeted MOH cost
Actual MOH cost
Budgeted machine hours
Actual machine hours
(a)
$426,240
Actual MOH rate
$
419,040
Determine the actual MOH rate and the budgeted MOH rate Metlock would have used last year under actual costing and normal
costing, respectively. (Round answers to 2 decimal places, e.g. 52.75.)
Budgeted MOH rate $
96,0
108,000
/machine hour
/machine hour
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