The following are the flexible budget of Coco Corporation in different levels of direct labor hours. Direct labor hours 20,000 | 30,000 | 40,000 Variable Factory Overhead 40,000 | 60,000 | 80,000 Fixed Factory Overhead 10,000 | 10,000 | 10,000 Each product needs 5 direct labor hours and the company expects to produce 2,000 units in 2021. A. Calculate the total factory overhead rate per unit using direct labor hours as an allocation base. B. Calculate the total factory overhead rate per unit using units of production as an allocation base
The following are the flexible budget of Coco Corporation in different levels of direct labor hours. Direct labor hours 20,000 | 30,000 | 40,000 Variable Factory Overhead 40,000 | 60,000 | 80,000 Fixed Factory Overhead 10,000 | 10,000 | 10,000 Each product needs 5 direct labor hours and the company expects to produce 2,000 units in 2021. A. Calculate the total factory overhead rate per unit using direct labor hours as an allocation base. B. Calculate the total factory overhead rate per unit using units of production as an allocation base
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter16: Job Order Costing
Section: Chapter Questions
Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...
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The following are the flexible budget of Coco Corporation in different levels of direct labor hours.
|
|
Direct labor hours |
|
|
20,000 | 30,000 | 40,000 |
|
Variable Factory |
40,000 | 60,000 | 80,000 |
|
Fixed Factory Overhead |
10,000 | 10,000 | 10,000 |
Each product needs 5 direct labor hours and the company expects to produce 2,000 units in 2021.
A. Calculate the total factory overhead rate per unit using direct labor hours as an allocation base.
B. Calculate the total factory overhead rate per unit using units of production as an allocation base
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