Wilco Inc. allocates overhead on the basis of direct labor hours. They report the followingbudgeted and actual data:Budgeted MOHActual MOHBudgeted Direct Labor HoursBudgeted Machine HoursActual Direct Labor HoursActual Machine HoursHow much is MOH Over/Under allocated for the period?O Underallocated by $4000O Underallocated by $2000Overallocated by $2000O Overallocated by $4000$80,000$82,00080,00040,00078,00043,000

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Description: Wilco Inc. allocates overhead on the basis of direct labor hours. They report the followingbudgeted and actual data:Budgeted MOHActual MOHBudgeted Direct Labor HoursBudgeted Machine HoursActual Direct Labor HoursActual Machine HoursHow much is MOH O

Solution... Predetermined overhead rate = Budgeted manufacturing overhead/ budgeted labor hours

Business

Accounting

Wilco Inc. allocates overhead on the basis of direct labor hours. They report the following budgeted and actual data: Budgeted MOH Actual MOH $80,000 $82,000 Budgeted Direct Labor Hours 80,000 Budgeted Machine Hours 40,000 Actual Direct Labor Hours 78,000 Actual Machine Hours 43,000 How much is MOH Over/Under allocated for the period? O Underallocated by $4000 O Underallocated by $2000 O Overallocated by $2000 O Overallocated by $4000

Wilco Inc. allocates overhead on the basis of direct labor hours. They report the following budgeted and actual data: Budgeted MOH Actual MOH $80,000 $82,000 Budgeted Direct Labor Hours 80,000 Budgeted Machine Hours 40,000 Actual Direct Labor Hours 78,000 Actual Machine Hours 43,000 How much is MOH Over/Under allocated for the period? O Underallocated by $4000 O Underallocated by $2000 O Overallocated by $2000 O Overallocated by $4000

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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Wilco Inc. allocates overhead on the basis of direct labor hours. They report the following
budgeted and actual data:
Budgeted MOH
Actual MOH
Budgeted Direct Labor Hours
Budgeted Machine Hours
Actual Direct Labor Hours
Actual Machine Hours
How much is MOH Over/Under allocated for the period?
O Underallocated by $4000
O Underallocated by $2000
Overallocated by $2000
O Overallocated by $4000
$80,000
$82,000
80,000
40,000
78,000
43,000

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