Answer:
Predetermined overhead rate=$19.5/machine hour
The company applied $877500 to the units produced.
Explanation:
a) Pre-determined overhead rate= <u>Budgeted overhead manufacturing cost</u>
Estimated number of machine hours
=975000/50000=$19.5/machine hour.
b)Applied overhead = Pre-determined overhead rate * Actual machine hours
= 19.5 * 45000
=$877500.
c.
In traditional costing we use as base for calculating overhead rate is machine hours or labor hours but in activity based costing we identify activity that consume resources,identify cost driver of each activity,compute cost rate per cost driver unit and finally assign cost to products by multiplying cost driver rate.
Predetermined overhead rate= estimated overhead/Estimated base (cost driver).
Answer:
$8,400
Explanation:
total commission = $300,000 x 8% = $24,000
50% co-brokerage split = $24,000 x 50% = $12,000
Walt's commission = $12,000 x 70% = $8,400
the 70% commission split between Walt and his broker means that Walt keeps 70% of the commission and the broker keeps 30%.
total commission is split between the two firms because the Walt's listing was sold by another firm.
