# 39 when do managers compute the budgeted indirect

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39) When do managers compute the budgeted indirect-cost rate? c) annually.
40) A difference between costing a job with normal costing and actual costing is that normal costing uses
43) The Chandelier Shoppe's actual manufacturing overhead costs are \$3,000,000. Overhead allocated onthe basis of direct labor hours. The direct labor hours were 55,000 for the period. What is the
manufacturing overhead rate? C) [(\$3,000,000 / 55,000)] = \$54.5444) Tia's Tea Manufacturing manufactures organic tea and applies manufacturing overhead costs toproduction at a budgeted indirect-cost rate of \$8.00 per direct labor hour. The following data was obtainedfrom the accountant's records for December 2012:Direct materials\$100,000Direct labor (2,000 hours @ \$8 per hour)\$16,000Indirect labor\$5,000Plant facility rent\$25,000Depreciation on plant machinery and equipment\$8,000Sales and commissions paid\$10,000Administrative expenses\$6,000Compute the actual amount of manufacturing overhead cost occurred in December 2012. B) [(\$5,000 +\$25,000 + \$8,000)] = \$38,00045) Christian's Consulting Service employs 10 full-time consultants and 5 assistants. The direct andindirect costs are applied on a consultant labor-hour basis that includes both the consultants and assistanthours. The following information was reported by the accountant in 2012.BudgetActualIndirect costs\$200,000\$250,000Annual Salary of each consultant\$100,000\$150,000Annual salary of each assistant\$45,000\$55,000Total professional labor hours40,000dlh55,000 dlhCompute theactualdirect-cost rate and theactualindirect-cost rate per professional labor-hour. D)[(\$150,000 × 10) + (\$55,000 × 5) / \$55,000] = \$32.27actualdirect-cost rate\$250,000 / \$55,000 = \$4.54actualindirect-cost rate46)The following data was reported by the manager at Cost Less Manufacturing:ActualTotal manufacturing overhead costs:\$2,200,000Total direct manufacturing labor-hours32,000Compute the actual manufacturing overhead rate for the single manufacturing overhead cost pool. C)[(\$2,200,000 / 32,000)] = \$68.75 per direct manufacturing labor-hour47) The following data was reported by the manager at Cost Less Manufacturing:Actual manufacturing overhead rate\$68.75Direct manufacturing labor hours88Compute the actual allocated manufacturing overhead costs. A) [(\$68.75 × 88)] = \$6,05048)Under normal costing, managers compute the amount of manufacturing overhead costs allocated toindividual jobs based on the budgeted rate multiplied by the actual quantity used of the allocation base.This is known as: c) manufacturing overhead allocated.49) Actual overhead costs incurred throughout the month are ________ to the Manufacturing OverheadControl account. a) added.

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