�� Overhead_application_practice_OL_

�� Overhead_application_practice_OL_ - Overhead...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Overhead Allocation Exercise Created by: Annie Paschall Date Created: 10/3/2006 Learning objective: to understand relationships of components used in over Directions: Complete the exercise. Give it a good try before looking at the answers.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
rhead allocation
Background image of page 2
Calculate the missing amounts in the following unrelated examples. Overhead is applied based on direct labor cost for these companies Company 1 Company 2 Company 3 a budgeted factory overhead 600,000 420,000 500,000 b budgeted direct labor cost 400,000 c predetermined factory overhead rate 120% 80% d actual direct labor cost incurred 570,000 600,000 e actual factory overhead incurred 830,000 425,000 f factory overhead applied g under- or (over-) applied factory overhead* 35,000 10,000 * The way the description is written tells you that no parentheses means "under" and parentheses means "over". Other companies might do it the other way, but the description should always tell you what the parentheses mean. The predetermined overhead application rate should be expressed as a percent
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

�� Overhead_application_practice_OL_ - Overhead...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online