COST MANAGEMENT: A STRATEGIC EMPHASIS E
COST MANAGEMENT: A STRATEGIC EMPHASIS E
8th Edition
ISBN: 9781260912449
Author: BLOCHER
Publisher: MCG
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Chapter 18, Problem 37E
To determine

Provide information for the application of balance scorecard.

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Jigar Industries uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $900,000, and its estimated level of activity was 40,000 direct labor-hours. The company's direct labor wage rate is $15 per hour. Actual manufacturing overhead amounted to $940,000, with actual direct labor cost of $620,000. For the year, manufacturing overhead was__. (Over-applied or Under-applied) Answer
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AsumaCompany's high and low level of activity last year was 56,000 units of product produced in May and 18,000 units produced in November. Machine maintenancecosts were $162,600 in May and $63,800 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which productionis expected to be 35,000 units. Answer
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