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Sloan [31]
2 years ago
14

Terrence Industries charges manufacturing overhead to products by using a predetermined application rate, computed on the basis

of labor hours. The following data pertain to the current year:
Budgeted manufacturing overhead $1,800,000
Actual manufacturing overhead 1,810,000
Budgeted labor hours 60,000
Actual labor hours 61,500

What is the correct status of manufacturing overhead at year-end?
Business
1 answer:
puteri [66]2 years ago
5 0

Answer:

See below

Explanation:

First, we need to get the predetermined rate

Predetermined rate = Cost of manufacturing overhead / Cost driver

= $1,800,000/60,000

= $30

We will now calculate the application.

Actual labor hours × rate

= 61,500 × $30

= $1,845,000

We will now compare actual with overhead cost

= Applied Overhead cost - Actual manufacturing overhead

= $1,845,000 - $1,810,000

= $35,000

The above is an over application of overhead cost because the cost applied exceed the actual cost.

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fenix001 [56]

TRUE

<u>Explanation:</u>

The correct answer is true as the independent projects are selected based on the net present worth and the rate of return and do nothing alternative. In the independent projects, there is no need for the incremental B/C analysis. Simple B/C ratio will do it. If the B/C > 1, benefits outweigh the costs and the project is selected provided that there is no budget limitation. Thus, the given statement is absolutely the true one.

6 0
3 years ago
XYZ Corporation's standards call for 1,000 direct labor-hours to produce 250 units of product. During October the company worked
larisa [96]

Answer:

Standard hours= 1,200 hours

Explanation:

Giving the following information:

XYZ Corporation's standards call for 1,000 direct labor-hours to produce 250 units of product.

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Standard hour per unit= 1,000 / 250= 4 hours per unit

Now, the standard hours allowed for 300 units:

Standard hours= standard hour per unit*number of units

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Standard hours= 1,200 hours

3 0
3 years ago
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andrezito [222]

Answer:

This is an example of switch trading.

Explanation:

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kiruha [24]

Answer: (E) Pull strategy

Explanation:

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Therefore, Option (E) is correct.  

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3 years ago
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