39 when do managers compute the budgeted indirect

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 on
the 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)] = $54.54
44) Tia's Tea Manufacturing manufactures organic tea and applies manufacturing overhead costs to
production at a budgeted indirect-cost rate of $8.00 per direct labor hour. The following data was obtained
from the accountant's records for December 2012:
Direct materials $100,000
Direct labor (2,000 hours @ $8 per hour) $16,000
Indirect labor $5,000
Plant facility rent $25,000
Depreciation on plant machinery and equipment $8,000
Sales and commissions paid $10,000
Administrative expenses $6,000
Compute the actual amount of manufacturing overhead cost occurred in December 2012. B) [($5,000 +
$25,000 + $8,000)] = $38,000
45) Christian's Consulting Service employs 10 full-time consultants and 5 assistants. The direct and
indirect costs are applied on a consultant labor-hour basis that includes both the consultants and assistant
hours. The following information was reported by the accountant in 2012.
Budget Actual
Indirect costs $200,000 $250,000
Annual Salary of each consultant $100,000 $150,000
Annual salary of each assistant $45,000 $55,000
Total professional labor hours 40,000 dlh 55,000 dlh
Compute the actual direct-cost rate and the actual indirect-cost rate per professional labor-hour. D)
[($150,000 × 10) + ($55,000 × 5) / $55,000] = $32.27 actual direct-cost rate
$250,000 / $55,000 = $4.54 actual indirect-cost rate
46)The following data was reported by the manager at Cost Less Manufacturing:
Actual
Total manufacturing overhead costs: $2,200,000
Total direct manufacturing labor-hours 32,000
Compute the actual manufacturing overhead rate for the single manufacturing overhead cost pool. C)
[($2,200,000 / 32,000)] = $68.75 per direct manufacturing labor-hour
47) The following data was reported by the manager at Cost Less Manufacturing:
Actual manufacturing overhead rate $68.75
Direct manufacturing labor hours 88
Compute the actual allocated manufacturing overhead costs. A) [($68.75 × 88)] = $6,050
48)Under normal costing, managers compute the amount of manufacturing overhead costs allocated to
individual 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 Overhead
Control account. a) added.