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Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year... Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours. Standard direct labor-hours aliowed for the actual output. $2 ....... $250,000 .... 39,000 38.000

Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year... Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours. Standard direct labor-hours aliowed for the actual output. $2 ....... $250,000 .... 39,000 38.000

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...
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Applying Overhead in a Standard Costing System

Privack Corporation has a standard cost system in which it applies overhead to products base the standard direct labor-hours allowed for the actual output of the period. Data concerning most recent year appear below:

Required:

1. Compute the predetermined overhead rate for the year. Be sure to include the total budget fixed overhead and the total budgeted variable overhead in the numerator of your rate.

2. Compute the amount of overhead that would be applied to the output of the period.

Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year... Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours. Standard direct labor-hours aliowed for the actual output. $2 ....... $250,000 .... 39,000 38.000
Transcribed Image Text:Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year... Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours. Standard direct labor-hours aliowed for the actual output. $2 ....... $250,000 .... 39,000 38.000
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