In: Accounting
[The following information applies to the questions displayed below.] The following data pertain to the Aquarius Hotel Supply Company for the year just ended. Budgeted sales revenue
Budgeted sales revenue |
$ |
200,000 |
Budgeted manufacturing overhead |
364,000 |
|
Budgeted machine hours (based on practical capacity) |
10,000 |
|
Budgeted direct-labor hours (based on practical capacity) |
20,000 |
|
Budgeted direct-labor rate per hour |
13 |
|
Actual manufacturing overhead |
338,000 |
|
Actual machine hours |
11,000 |
|
Actual direct-labor hours |
18,000 |
|
Actual direct-labor rate per hour |
17 |
Required: 1. Compute the firm’s predetermined overhead rate for the year using each of the following common cost drivers: a. machine hours b. direct labor hours c. direct labor dollars
2. Calculate the overapplied or underapplied overhead for the year using each of the following cost drivers. a. machine hours b. direct labor hours c. direct labor dollars