BA511-L7A4 - Student Name: Class: ROWE COMPANY Flexible...

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Class: ROWE COMPANY Flexible Budget-Finishing Department Budgeted direct labor-hours 50,000 Cost Formula Direct Labor-Hours Item per DLH 40,000 50,000 60,000 Variable overhead costs: Indirect labor $0.60 $ 24,000 $ 30,000 $ 36,000 Utilities 1.00 40,000 50,000 60,000 Maintenance 0.40 Total variable $2.00 Fixed overhead costs: Supervisory salaries 60,000 60,000 60,000 Insurance 5,000 5,000 5,000 Depreciation 190,000 190,000 190,000 Equipment rental Total fixed Total overhead costs $380,000 $400,000 $420,000 Correct! Correct! Correct! ROWE COMPANY Overhead Rates Total overhead rate: Total overhead costs $400,000 Budgeted DLH 50,000 Total overhead rate $8.00 Correct! Variable overhead rate: Variable overhead costs 100,000 Budgeted DLH 50,000 Variable overhead rate $2.00 Correct! Fixed overhead rate: Fixed overhead costs $300,000 Budgeted DLH 50,000 Fixed overhead rate $6.00 Correct! 16,000
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This note was uploaded on 06/14/2010 for the course BA ADF1 taught by Professor Russell during the Winter '09 term at Antelope Valley College.

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BA511-L7A4 - Student Name: Class: ROWE COMPANY Flexible...

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