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Unformatted text preview: 180 150 120 80 Number of employees 36 30 24 19 Required: Assuming the step-down method of allocating costs and the Maintenance Department renders the greatest service, determine the amount of each service department's costs that will be allocated to each production department. 3. Jones Corp. uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year: Budgeted factory overhead $675,000 Actual factory overhead $726,000 Budgeted direct-labor costs $450,000 Actual direct-labor costs $482,000 End of year balances are as follows: Materials inventory $120,000 WIP inventory $100,000 Cost of goods sold $150,000 Finished goods inventory $250,000 Required: a. Determine the budgeted factory-overhead rate based on direct-labor costs. b. What is the applied overhead based on direct-labor costs? c. What is the overhead variance? d. Prorate the overhead variance to the appropriate accounts....
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This note was uploaded on 10/05/2010 for the course ACC ACC561 taught by Professor David during the Spring '10 term at University of Phoenix.
- Spring '10