Week 3 : CVP Analysis and Variable Costing - Quiz
(TCO 2) Bubba’s Crawfish Processing Company uses a traditional overhead allocation based on direct
labor hours. For the current year overhead is estimated at $2,250,000 and direct labor hours are
budgeted at 415,000 hours. Actual overhead was $2,200,000 and actual overhead hours worked were
(a) Calculate the predetermined overhead rate.
(b) Calculate the overhead applied.
(c) Determine the amount of overhead that is over/underapplied.
(Points : 6)
(TCO 2) Thibodeaux Limousine Corporation is trying to determine a predetermined manufacturing
overhead. Estimated overhead for the upcoming year is $776,000. Budgeted machine hours are 105,000
hours, and budgeted labor hours are 17,500 hours at a rate of $10.00 per hour. Compute the
predetermined overhead rate based on:
(a) Direct labor dollars
(b) Direct labor hours
(c) Machine hours
(Points : 6)
(TCO 1) List and briefly describe four of the five differences between managerial accounting and
(Points : 4)
(TCO 2)The following information is available for Sappy’s Surgical Shears for the fiscal year ending
December 31, 20XX.
Beginning balance in Finished Goods $ 17,000
Ending balance in Finished Goods 15,200
Beginning balance in Work in Process 2,500
Ending balance in Work in Process 1,836
Selling expenses 123,000
General and administrative expenses 89,000
Direct material cost 54,500
Direct labor cost 66,000
Manufacturing overhead 21,400