Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E( cost) $ 90,000 50,000 Setups cost Ordering Cost Maintenance cost 150,000 30,000 E( actual transactions) Power Cost Driver Number of setups 400 Number of orders 4,000 Machine Hours 25,000 Kilowatt hours 75,000 The following is one of the jobs completed during the year Job 700 Job 701 Direct materials $1200 $600 $400 100 Direct Labor $900 Units completed 250 40 Number of setups|2 Number of orders 10 50 DLH 20 1 Machine hours 40 Kilowatt hours 60 25 Actual overhead $2500 $1250 The company's practical activity is 9000 DHL

Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E( cost) $ 90,000 50,000 Setups cost Ordering Cost Maintenance cost 150,000 30,000 E( actual transactions) Power Cost Driver Number of setups 400 Number of orders 4,000 Machine Hours 25,000 Kilowatt hours 75,000 The following is one of the jobs completed during the year Job 700 Job 701 Direct materials $1200 $600 $400 100 Direct Labor $900 Units completed 250 40 Number of setups|2 Number of orders 10 50 DLH 20 1 Machine hours 40 Kilowatt hours 60 25 Actual overhead $2500 $1250 The company's practical activity is 9000 DHL

Name: REQUIREDPart A1. Calculate the predetermined rate for Job700 using FB
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Description: REQUIREDPart A1. Calculate the predetermined rate for Job700 using FBC based on DHL for eachjob2. Calculate total product cost using FBCbased on DHL for job 7003. Calculate the unit cost of the job4. Is the overhead over-applied or under-appliedPart

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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