The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the beginning of the year the company expects fixed overhead costs to be S600,000 and variable costs to be S800,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. The actual fixed overhead costs are $700,000 and the actual variable overhead costs are $750,000. The actual machine hours during the year are 5,500 and the actual direct labor hours are 90,000.a. How much overhead is allocated?b. What is the over/underabsorbed overhead?
The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the beginning of the year the company expects fixed overhead costs to be S600,000 and variable costs to be S800,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. The actual fixed overhead costs are $700,000 and the actual variable overhead costs are $750,000. The actual machine hours during the year are 5,500 and the actual direct labor hours are 90,000.a. How much overhead is allocated?b. What is the over/underabsorbed overhead?
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...
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