Orion Manufacturing reports the following for June: • Actual direct labor-hours: 8,500 hours • Actual direct labor cost: $43,000 • Direct material used: $13,500 • Cost of goods sold: $92,000 • Under applied overhead: $6,000 • Predetermined overhead rate: $4.50 per DLH What is the actual overhead cost incurred during the month?

Orion Manufacturing reports the following for June: • Actual direct labor-hours: 8,500 hours • Actual direct labor cost: $43,000 • Direct material used: $13,500 • Cost of goods sold: $92,000 • Under applied overhead: $6,000 • Predetermined overhead rate: $4.50 per DLH What is the actual overhead cost incurred during the month?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...

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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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If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
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