Company made following predictions Budgeted factory overhead costs Budgeted direct labor hours Budgeted machine hours year: $300,000 50,000 hours 100,000 hours ob A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs. factory overhead is applied based on machine hours, the cost of Job A2 for Mannitou Company is Da. $75,000. Ob. $63,000. Oc. $69,000. d. $66,000.

Company made following predictions Budgeted factory overhead costs Budgeted direct labor hours Budgeted machine hours year: $300,000 50,000 hours 100,000 hours ob A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs. factory overhead is applied based on machine hours, the cost of Job A2 for Mannitou Company is Da. $75,000. Ob. $63,000. Oc. $69,000. d. $66,000.

Name: Mannitou Company made the following predictions for the year:Budgeted
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Description: Mannitou Company made the following predictions for the year:Budgeted factory overhead costsBudgeted direct labor hoursBudgeted machine hours$300,00050,000 hours100,000 hoursJob A2 (which was started and completed in June) used 3,000 direct labor ho

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Mannitou Company made the following predictions for the year:
Budgeted factory overhead costs
Budgeted direct labor hours
Budgeted machine hours
$300,000
50,000 hours
100,000 hours
Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and $57,000 of prime costs.
If factory overhead is applied based on machine hours, the cost of Job A2 for Mannitou Company is
Oa. $75,000.
Ob. $63,000.
Oc. $69,000.
Od. $66,000.

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