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vodka [1.7K]
3 years ago
6

Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided th

e following information for its most recent year: Total budgeted fixed overhead cost for the year $ 300,000 Actual fixed overhead cost for the year $ 276,000 Budgeted direct labor-hours 60,000 Actual direct labor-hours 56,000 Standard direct labor-hours allowed for the actual output 57,800 What is the fixed overhead applied to production during the period
Business
1 answer:
g100num [7]3 years ago
8 0

Answer:

$289,000

Explanation:

Predetermined overhead rate (Fixed) = Budgeted Fixed overhead cost / Budgeted hours

Predetermined overhead rate (Fixed) = 300,000/60,000

Predetermined overhead rate (Fixed) = $5 per hours

Applied Fixed overhead = Standard hours allowed × Predetermined overhead rate(fixed)

Applied Fixed overhead = 57,800 * $5 per hours

Applied Fixed overhead = $289,000

So, the fixed overhead applied to production during the period is $289,000

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I would say option D
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Explanation:

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Read 2 more answers
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Answer:

The sofware-relate cost to capitalized will be 1,300,000

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<u>The cost than a business can capitalize will stop once the testing phase is complete.</u>

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<u>Post-implementation.</u> The cost after the implementation of the software will be treated as expenses. The 275,000 maintenance and customer support will not be capitalized. It will be treated as expense

<u></u>

The software amount will be 1,300,000 which is the value of the cost incurred in the testing phases

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