Wiki Wiki Company has determined that the variable overhead rate is $4.5 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 12,000 hours for the month. Fixed costs are budgeted at $75,600 for the month. a. Prepare a monthly factory overhead flexible budget for 11,000, 12,000, and 13,000 hours of production. Enter all amounts as positive numbers. Wiki Wiki Company Monthly Factory Overhead Cost Budget-Fabrication Department Direct labor hours 11,000 12,000 13,000 Variable factory overhead cost Fixed factory overhead cost Total factory overhead cost b. How much overhead would be applied to production if 13,000 hours were used in the department during the month? If required, round your calculations to two decimal places and your final answer to the nearest dollar.

Wiki Wiki Company has determined that the variable overhead rate is $4.5 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 12,000 hours for the month. Fixed costs are budgeted at $75,600 for the month. a. Prepare a monthly factory overhead flexible budget for 11,000, 12,000, and 13,000 hours of production. Enter all amounts as positive numbers. Wiki Wiki Company Monthly Factory Overhead Cost Budget-Fabrication Department Direct labor hours 11,000 12,000 13,000 Variable factory overhead cost Fixed factory overhead cost Total factory overhead cost b. How much overhead would be applied to production if 13,000 hours were used in the department during the month? If required, round your calculations to two decimal places and your final answer to the nearest dollar.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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