Busi 101 Notes 1:24:11

Busi 101 Notes 1:24:11 - b) What is actual overhead?...

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Busi 101 Notes 1/24/11 Example 1: TMC: 800 o WiP Increases 32 o Finished Goods Decreased 65 o CGM? 768 o CGS? 833 Beginning WiP 0 +TMC 800 Total WiP 800 -End WiP 32 CGM 768 Beginning Finished Goods 65 +CGM 768 Goods Available for Sale 833 -End Finished Goods 0 CGS 833 Cost driver: factor that causes the incurrence of costs Example 2: Budget Actual Overhead Costs $500,000 $520,000 Labor Hours 100,000 105,000 a) What is applied overhead? (500,000/100,000)= $5/Labor Hour $5/Labor Hour *(105,000)= $525,000 is applied overhead
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Unformatted text preview: b) What is actual overhead? $520,000 c) Was overhead over applied or under applied and by how much? Overhead was over applied by $5,000. Then we did page 82 in the textbook, brief exercises 2-2, 2-3, 2-4, and 2-5. All answers are in the course pack *** To Dispose of excess overhead: 1) Close to CGS (write off) OR 2) Prorate (more accurate) To write off: If over applied, Manufacturing Overhead CGS If under applied, CGS Manufacturing Overhead...
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Busi 101 Notes 1:24:11 - b) What is actual overhead?...

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