Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4] Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Data concerning the most recent year appear below: 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 allowed for the actual output Required: $ 4.00 $ 592,856 59,286 83,000 82,000 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. Note: Round your answer to the nearest whole dollar amount. 2. Compute the amount of overhead applied to the output of the period. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. 1. Predetermined overhead rate 2. Overhead applied per DLH
Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4] Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Data concerning the most recent year appear below: 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 allowed for the actual output Required: $ 4.00 $ 592,856 59,286 83,000 82,000 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. Note: Round your answer to the nearest whole dollar amount. 2. Compute the amount of overhead applied to the output of the period. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. 1. Predetermined overhead rate 2. Overhead applied per DLH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4]
Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Data
concerning the most recent year appear below:
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 allowed for the actual output
Required:
$ 4.00
$ 592,856
59,286
83,000
82,000
1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total
budgeted variable overhead in the numerator of your rate.
Note: Round your answer to the nearest whole dollar amount.
2. Compute the amount of overhead applied to the output of the period.
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
1. Predetermined overhead rate
2. Overhead applied
per DLH](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F26bb5a01-1db3-4a2a-bf65-a97a8706c63a%2F1252a836-5fbf-4cca-82cb-56f8bf847e5a%2F1hemq6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4]
Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Data
concerning the most recent year appear below:
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 allowed for the actual output
Required:
$ 4.00
$ 592,856
59,286
83,000
82,000
1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total
budgeted variable overhead in the numerator of your rate.
Note: Round your answer to the nearest whole dollar amount.
2. Compute the amount of overhead applied to the output of the period.
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
1. Predetermined overhead rate
2. Overhead applied
per DLH
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