Sherfield Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budgeted direct labor hours totaled 80,000 hours and budgeted machine hours totaled 20,000 hours. At the end of the year, the actual overhead costs recorded totaled $450,000 and actual direct labor hours were 86,000. The Sherfield Company's production process is very labor-intensive and therefore uses direct labor hours as the activity base. With this information, what is the assigned (applied) amount of MOH that Sherfield Company assigns to production?
Sherfield Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budgeted direct labor hours totaled 80,000 hours and budgeted machine hours totaled 20,000 hours. At the end of the year, the actual overhead costs recorded totaled $450,000 and actual direct labor hours were 86,000. The Sherfield Company's production process is very labor-intensive and therefore uses direct labor hours as the activity base. With this information, what is the assigned (applied) amount of MOH that Sherfield Company assigns to production?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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