1. Uno company prepared the following 2010 abbreviated fl exible budget for different levels of machine hours: Variable manufacturing overhead Fixed manufacturing overhead 40,000 P 80,000 325,000 44,000 P 88,000 325,000 48,000 P 96,000 325,000 52,000 P104,000 325,000 Each product requires 4 hours of machine time, and the company expects to produce 10,000 units in 20X0. Production is expected to be evenly distributed throughout the year. REQUIRED: a. Calculate separate predetermined variable and fixed OH rates using as the basis of application (1) units of production and (2) machine hours. b. Calculate the combined predetermined OH rate using (1) units of product and (2) machine hours.
1. Uno company prepared the following 2010 abbreviated fl exible budget for different levels of machine hours: Variable manufacturing overhead Fixed manufacturing overhead 40,000 P 80,000 325,000 44,000 P 88,000 325,000 48,000 P 96,000 325,000 52,000 P104,000 325,000 Each product requires 4 hours of machine time, and the company expects to produce 10,000 units in 20X0. Production is expected to be evenly distributed throughout the year. REQUIRED: a. Calculate separate predetermined variable and fixed OH rates using as the basis of application (1) units of production and (2) machine hours. b. Calculate the combined predetermined OH rate using (1) units of product and (2) machine hours.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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