roduction reports for the third quarter show the following data: Month Machine hours Direct labour hours Direct materials cost (£) Floor surface (square meters) Actual Overhead (£) July 10,000 44,000 25,000 150 31,200 August 15,000 37,800 21,750 170 47,000 September 13,400 59,500 32,000 210 40,100 Which variable would be the most likely basis for allocating overhead? a. Machine hours b. Labour hours c. Floor surface d. Direct materials cost
roduction reports for the third quarter show the following data: Month Machine hours Direct labour hours Direct materials cost (£) Floor surface (square meters) Actual Overhead (£) July 10,000 44,000 25,000 150 31,200 August 15,000 37,800 21,750 170 47,000 September 13,400 59,500 32,000 210 40,100 Which variable would be the most likely basis for allocating overhead? a. Machine hours b. Labour hours c. Floor surface d. Direct materials cost
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 38BEB: Mulliner Company showed the following information for the year: Required: 1. Calculate the standard...
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Question
roduction reports for the third quarter show the following data:
Month |
Machine hours |
Direct labour hours |
Direct materials cost (£) |
Floor surface (square meters) |
Actual |
July |
10,000 |
44,000 |
25,000 |
150 |
31,200 |
August |
15,000 |
37,800 |
21,750 |
170 |
47,000 |
September |
13,400 |
59,500 |
32,000 |
210 |
40,100 |
Which variable would be the most likely basis for allocating overhead?
a. |
Machine hours |
|
b. |
Labour hours |
|
c. |
Floor surface |
|
d. |
Direct materials cost |
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