Nafth Company has an Equipment Services Department that performs all needed maintenance work on theequipment in the company's Fabrication and Assembly Departments. Costs of the equipment ServicesDepartment are charged to the Fabrication and Assembly Departments on the basis of direct labor-hours. Dataon direct labor-hours for last year follow:Budgeted direct labor-hoursActual direct labor-hoursPeak-period direct labor-hoursFabrication AssemblyTotal21,00051,00072,00026,00056,00082,00031,00071,000102,000For the year just ended, the company budgeted its variable maintenance costs at $220,000 for the year. Actualvariable maintenance costs for the year totaled $265,000.For performance evaluation purposes, how much of the $265,000 of actual variable maintenance cost should becharged to the Assembly Department at the end of the year just ended?Note: Do not round your intermediate calculations.

Step 1:First calculate the predetermined overhead rate: Predetermined overhead rate = Budgeted…

Answered: Nafth Company has an Equipment Services…

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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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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