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Unformatted text preview: Company A B C Direct Labor Hours 60,000 30,000 40,000 Machine Hours 25,000 90,000 18,000 Direct Materials Cost $300,000 $160,000 $240,000 Manufacturing Overhead Cost $432,000 $270,000 $384,000 Predetermined overhead rates are computed using the following drivers in the three companies: Company Driver A DLH B MH C DM Cost Company A works on three jobs during the upcoming year. Direct labor hours recorded by job are Job 308 - 7,000 hours; Job 309 - 30,000 hours and Job 310 - 21,000 hours. Actual overhead cost total $420,000 for the year. Unadjusted Cost of Goods Sold is $750,000. 1) Compute the predetermined OH rate for each company. 2) What is the amount of the OH variance for Company A? 3) What is the amount of adjusted Cost of Goods Sold? imated 000. ere started DLH. e: ts...
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- Spring '11
- Managerial Accounting