Question

xyz Corp has thr following data:

budgeted o/h $166,000
budgeted machine hrs (driver) $30,000

actual machine hrs:

job 17.   10,000
job 18.    7,000
job 19.    13,000
job 20.    7,300

job 18, 19 and 20 were finished, job 20 was sold. total actual overhead = 172,000. what is actual o/h in finished goods?

atual overhead fg _______

Answer 1

Answer:

Pre-determined Overhead rate = Budgeted Overheads / Budgeted Machine hours

                                                        = $166,000 / 30,000 hours

                                                        = $5.53 per machine hour

Job 20 is sold, so it is not in Finished goods

Job 17 is yet to be completed

So, Job 17 and Job 18 are in Finished goods

Overhead in Job 17 = 10,000 machine hours * $5.53 per machine hour

                                    = $55,333

Overhead in Job 18 = 10,000 machine hours * $5.53 per machine hour

                                    = $38,733

So,the total Overhead in Finsihed goods = $55,333 + $38,733 = $94,066