Data for the past two years for Behavior Corp. are: 20A 20B Units produced 10,000 11,000 Overhead applied per unit P15 P15 Actual overhead: Fixed 50,000 55,000 Variable 95,000 150,000 Estimated overhead: Fixed 50,000 56,000 Variable 130,000 142,000 The company determines overhead rates based on estimated units to be produced. Required: Determine the estimated units of production used to obtain the overhead allocation rates in 20A and 20B. Determine the over- or underapplied factory overhead for each of the two years.
Data for the past two years for Behavior Corp. are: 20A 20B Units produced 10,000 11,000 Overhead applied per unit P15 P15 Actual overhead: Fixed 50,000 55,000 Variable 95,000 150,000 Estimated overhead: Fixed 50,000 56,000 Variable 130,000 142,000 The company determines overhead rates based on estimated units to be produced. Required: Determine the estimated units of production used to obtain the overhead allocation rates in 20A and 20B. Determine the over- or underapplied factory overhead for each of the two years.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...
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Data for the past two years for Behavior Corp. are:
| 20A | 20B | |
| Units produced | 10,000 | 11,000 |
| P15 | P15 | |
| Actual overhead: | ||
| Fixed | 50,000 | 55,000 |
| Variable | 95,000 | 150,000 |
| Estimated overhead: | ||
| Fixed | 50,000 | 56,000 |
| Variable | 130,000 | 142,000 |
The company determines overhead rates based on estimated units to be produced.
Required:
- Determine the estimated units of production used to obtain the overhead allocation rates in 20A and 20B.
- Determine the over- or underapplied factory overhead for each of the two years.
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