For Week 1, the budgeted labour hours for normal activity are 5,000 hours. Thebudgeted fixed cost is £15,000. The fixed overhead cost rate is calculated on thebasis of budgeted cost and budgeted normal activity. At the end of the week it isfound that only 4,000 hours were worked in practice. What is the amount of fixedoverhead applied to jobs in Week 1?a) £3,000b) £18,000c) £12,000d) £15,000

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Description: For Week 1, the budgeted labour hours for normal activity are 5,000 hours. Thebudgeted fixed cost is £15,000. The fixed overhead cost rate is calculated on thebasis of budgeted cost and budgeted normal activity. At the end of the week it isfound tha

SolutionThe amount of fixed cost applied to the job in week 1 is £12000

Answered: overhead applied to jobs in Week 1?

Business

Accounting

overhead applied to jobs in Week 1?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...

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