This preview shows page 1. Sign up to view the full content.
Unformatted text preview: **First find FMOH rate = budgeted FMOH cost/budgeted DLH $3,200,000/(200,000 bowls @ 3 hours each) = $5.33 Then find how much you would have applied given actual production level= 150,000 bowls X 3 DLH 450,000 X 5.33 (FMOH rate) $2,398,500 If you are off by a little bit here it is probably a rounding error since the FMOH rate is actually $5.33333; if you leave this in your calculator and keep going, it will create a small rounding issue....
View Full Document
- Spring '10
- Financial Accounting