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: 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 $ 4.00 $ 528, 180 per DLH 75,455 86,000 81,000
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: 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 $ 4.00 $ 528, 180 per DLH 75,455 86,000 81,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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:
1. Predetermined overhead rate
2. Overhead applied
$ 4.00
$ 528, 180
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.
per DLH
75,455
86,000
81,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6069db0-f496-4c11-99c9-1e809a876661%2F8695c91a-cbc5-4c35-9276-0b64d7e334a1%2F5uf3s1z_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:
1. Predetermined overhead rate
2. Overhead applied
$ 4.00
$ 528, 180
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.
per DLH
75,455
86,000
81,000
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