The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- hour) $1.50 Overhead Costs Variable cost Fixed cost Total overhead cost Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs The following information is available for a recent period: a. The denominator activity of 9,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 9,000 standard machine-hours level of activity, the company should produce 4,500 units of product. c. The company's actual operating results were as follows: Variable rate Fixed rate Predetermined overhead rate 4,800 9,000 $13,940 $ 21,000 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Answer is complete and correct. S per MH Machine-Hours per MH 9,000 10,000 11,000 $13,500 $15,000 $16,500 20,700 20,700 20,700 $34,200 $35,700 $37,200 per MH
The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- hour) $1.50 Overhead Costs Variable cost Fixed cost Total overhead cost Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs The following information is available for a recent period: a. The denominator activity of 9,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 9,000 standard machine-hours level of activity, the company should produce 4,500 units of product. c. The company's actual operating results were as follows: Variable rate Fixed rate Predetermined overhead rate 4,800 9,000 $13,940 $ 21,000 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Answer is complete and correct. S per MH Machine-Hours per MH 9,000 10,000 11,000 $13,500 $15,000 $16,500 20,700 20,700 20,700 $34,200 $35,700 $37,200 per MH
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...
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