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)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter9: Standard Costing: A Functional-based Control Approach
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Sherfield Company uses a normal costing system, applying overhead.... Need answer the general accounting question

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?
Transcribed Image Text: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?
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