The predetermined overhead rate of

The predetermined - Indirect Materials $0.02 $ 1,500 Indirect Labor.40 30,000 Maintenance.30 22,500 Total Variable Costs $0.72 54,000 Fixed Cost

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The predetermined overhead rate of $1.30 will result in $0.65 of overhead being allocated to each set  of bases produced. (It is calculated using .5 direct labor hours per set times $1.30 per hour.)  Bases, Inc. Manufacturing Overhead Budget 20X1 Production in Units 150,000 Direct Labor Hours per Unit = .5 Direct Labor Hours = 75,000 *** Cost per Direct Labor Hour Total Cost Monthly Cost Variable Costs
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Indirect Materials $0.02 $ 1,500 * Indirect Labor .40 30,000 * Maintenance .30 22,500 * Total Variable Costs $0.72 54,000 * Fixed Cost Depreciation, Machinery 6,300 $525 ** Building Rent 12,000 1,000 ** Supervisor's Salary 25,200 2,100 ** Total Fixed Costs 0.58 43,500 $ 3,625 ** Total Manufacturing Overhead (1) $1.30 $97,500 Budgeted Direct Labor Hours (2) 75,000 Predetermined (standard) Overhead Rate (1) ÷ (2) $1.30...
View Full Document

This note was uploaded on 11/16/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

Page1 / 2

The predetermined - Indirect Materials $0.02 $ 1,500 Indirect Labor.40 30,000 Maintenance.30 22,500 Total Variable Costs $0.72 54,000 Fixed Cost

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online