InClassCh10.pdf

InClassCh10.pdf - l Managerial Accounting In Class Chapter...

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l- Managerial Accounting In Class Chapter 1€ t. Ftict Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours. The company's total budgeted variable and fixed manufacturing overhead costs at the denominator ievel of activity are $20,000 for variable overhead and $30,000 for hxed overhead. The predetermined overhead rate. including both hxed and variable components. is $2.50 per direct -lebgLhgur. The standards call for two direct labor-hours per unit of output produced. Last year, the company produced I 1,500 units of product and worked 22.000 direct labor-hours. Actual costs were $22,500 for variable overhead ana-$:1,000 for fixed overhead. Required: )i a. What is the denominator level of activity? b. What were the standard hours allowed for the output last year? - ). .'_ \.,, ,. _, \ " _., c. V/hat was the variable a. The denominator activity level manufacfuring overhead rates? 1\
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This note was uploaded on 09/08/2010 for the course BUS 21 at San Jose State.

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InClassCh10.pdf - l Managerial Accounting In Class Chapter...

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