manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturin overhead are given below:Level of activityOverhead costs at the denominator activity level:Variable overhead costFixed overhead costThe following data pertain to operations for the most recent period:Actual hoursStandard hours allowed for the actual outputActual total variable manufacturing overhead costActual total fixed manufacturing overhead cost2,550 DLHs$ 8,600$ 35,1252,700 DLHs2,597 DLHs$ 9,200$ 35,525How much overhead was applied to products during the period to the nearest dollar?Note: Do not round Intermediate calculations.Multiple Cholce$44.125$43.725$44.725$44.531$44.725 A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturingoverhead are given below.Level of activityOverhead costs at the denominator activity level:Variable overhead costFixed overhead costThe following data pertain to operations for the most recent period:Actual hoursStandard hours allowed for the actual outputActual total variable manufacturing overhead costActual total fixed manufacturing overhead costMultiple Choice$44,125$43,7252,550 DLHSHow much overhead was applied to products during the period to the nearest dollar?Note: Do not round Intermediate calculations.$44,725$8,600$ 35,1252,700 DLHS2,597 DLHS$ 9,200$ 35,525 The following data pertain to operations for the most recent period:Actual hoursStandard hours allowed for the actual outputActual total variable manufacturing overhead costActual total fixed manufacturing overhead costMultiple ChoiceHow much overhead was applied to products during the period to the nearest dollar?Note: Do not round Intermediate calculations.O $44.,125O $43.725$44,7252,700 DLHs2,597 DLHS$44,531$ 9,200$ 35,525

The purpose of applying overhead is to allocate the indirect manufacturing costs to specific production units, thereby offering a foundation for ascertaining the overall cost of producing each unit. A crucial factor in determining the overall cost of goods manufactured, applied overhead aids in assessing the overall cost-effectiveness of a manufacturing process.Computation of the predetermined overhead rate Predetermined overhead rate = (8,600 + 35,125) / 2,550 = 43,725 / 2,550 = 17.14705882352941Computation of the overhead applied Overhead applied = 17.14705882352941 x 2,597 = 44,530.91 = 44,531 Final AnswerHence, the overhead applied is $44,531

Answered: er of industrial equipment has a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturin overhead are given below: Level of activity Overhead costs at the denominator activity level: Variable overhead cost Fixed overhead cost The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 2,550 DLHs $ 8,600 $ 35,125 2,700 DLHs 2,597 DLHs $ 9,200 $ 35,525 How much overhead was applied to products during the period to the nearest dollar? Note: Do not round Intermediate calculations. Multiple Cholce $44.125 $43.725 $44.725 $44.531 $44.725

A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturing
overhead are given below.
Level of activity
Overhead costs at the denominator activity level:
Variable overhead cost
Fixed overhead cost
The following data pertain to operations for the most recent period:
Actual hours
Standard hours allowed for the actual output
Actual total variable manufacturing overhead cost
Actual total fixed manufacturing overhead cost
Multiple Choice
$44,125
$43,725
2,550 DLHS
How much overhead was applied to products during the period to the nearest dollar?
Note: Do not round Intermediate calculations.
$44,725
$8,600
$ 35,125
2,700 DLHS
2,597 DLHS
$ 9,200
$ 35,525

The following data pertain to operations for the most recent period:
Actual hours
Standard hours allowed for the actual output
Actual total variable manufacturing overhead cost
Actual total fixed manufacturing overhead cost
Multiple Choice
How much overhead was applied to products during the period to the nearest dollar?
Note: Do not round Intermediate calculations.
O $44.,125
O $43.725
$44,725
2,700 DLHs
2,597 DLHS
$44,531
$ 9,200
$ 35,525

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