True or False. If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is 80,000, and the actual direct labor hours is 6,700 for the month, the factory overhead rate for the month is $68.65 (if the allocation is based on direct labor hours).

Q: For the period just ended, LAMBANA CO. budgeted its variable overhead at P40 per direct labor hour…

A: The variable overheads are the costs that are affected by the change in the level of production, the…

Q: the actual amount was $350,000. Actual production for July was 25,000 units, and actual…

A:

Q: Greedy Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of…

A: Overheads are the indirect costs related to production or manufacturing of goods. These costs can…

Q: An overhead cost budget for the next month is being prepared by Ebony Supply Company. Past studies…

A: Overhead means the amount spent which is not directly linked with production but indirectly linked.…

Q: Aneto productions uses a predetermined overhead recovery rate based on hours. A summary of the…

A: This question deals with the calculation of budgeted level of machine hour. We have been given…

Q: The following information relates to the Finishing department of Tom company for the fourth quarter:…

A: The question is based on the concept of Cost Accounting.

Q: ABC Company budgeted total variable costs at $250,400 for the current year. In addition, they…

A: Solution: Total budgeted overhead = Total variable overhead + Factory rent + Depreciation on factory…

Q: The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing…

A: Fixed overhead rate = budgeted fixed overhead /budgeted machine hours = 16920/36000 = $0.47 per hour

Q: The following information relates to Finishing department of Tom company for the fourth quarter:…

A: SOLUTION- EXPLANATION- SPENDING VARIANCE = ACTUAL FACTORY OVERHEAD - FLEXIBLE BUDGETED FACTORY…

Q: The applied overhead of Kayamoto company for the year is P2,484,000 based on 160,000 labor hours. If…

A: Overhead represents the indirect cost associated with the production process of the company.

Q: Botosan Factory has budgeted factory overhead for the year at $666,573, and budgeted direct labor…

A: Overhead allocation refers to the distribution of the indirect costs for the produced goods and in…

Q: The following budget data are available for Happy Company:   Estimated direct labor hours 12,000…

A: Predetermined overhead rate = Estimated factory overhead costs / Estimated direct labor dollars

Q: The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing…

A: Overhead applied = (2,700 machine hours x P2.10 per hour) + P16,920 Overhead applied = P22,590

Q: Crawford Company's standard fixed overhead cost is $6.00 per direct labor hour based on budgeted…

A: Fixed  overhead costs do not change with the level of business activity during a period. These costs…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Q: Teel Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in…

A: The wages and salaries in the planning budget would be calculated as per the expected activity of…

Q: Carla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of…

A: Fixed Overhead:-These are those cost which does not change for a long period of time even if volume…

Q: egan, Incorporated uses the following standard costs per unit for one of its products: Direct labor…

A: The difference between the actual amount of an expense and the expected (or budgeted) amount of an…

Q: Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to…

A: Formula: Total budgeted fixed factory overhead = Total applied factory overhead - Total Variable…

Q: herokee Company applies factory overhead on the basis of direct labor hours. Budget and actual data…

A: Budgeted Factory overhead cost per unit = Budgeted Factory overhead cost / Budgeted Direct labor…

Q: Beech has budgeted fixed overhead of $402,500 based on budgeted production of 17,500 units. During…

A: Budgeted Fixed overhead rate is calculated in the beginning of the period (i.e., a year). Such…

Q: Ikawna Corp uses machine hours as a base for its factory overhead rate. The following information is…

A: Calculation of Actual factory overhead cost incurred:: Factory overhead cost allocated::P13,26,000…

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $30,800 per month plus $62 per…

A: The activity variance for manufacturing overhead is calculated as difference between flexible budget…

Q: The applied overhead of Kayamoto company for the year is P2,496,000 based on 260,000 labor hours. If…

A: The overhead rate is as follows: Resultant table:

Q: XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During…

A: Actual hours = applied overhead / predetermined overhead application rate  = P363,000 /0.30 =…

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $32,400 per month plus $54 per…

A: Formulas; Budgeted Manufacturing Overhead = Manufacturing overhead + (Rate per Machine hours x…

Q: Botosan Factory has budgeted factory overhead for the year at $13,500,000, and budgeted direct labor…

A: Introduction:- The following formula used to calculate Actual factory overhead applied as follows…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Overheads: These are defined as the ongoing expenses that are incurred centrally in relation to a…

Q: If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is…

A: Predetermined overhead rate Predetermined overhead rate is an allocation rate that applies a certain…

Q: A company estimates its manufacturing overhead will be $617,864 for the next year. What is the…

A: The formula used to calculate Predetermined Overhead Rate is as follows: = Manufacturing Overhead /…

Q: Predetermined overhead rate Factory overhead charged to Work in Process account Under / (Over)…

A: Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct…

Q: YCO, Inc. budgeted manufacturing overhead of $294,644 at a level of 9,527 fabrication hours. The…

A: Applied manufacturing overhead = Actual fabrication hours x manufacturing overhead rate where,…

Q: Meger Manufacturing uses the direct labor cost method for applying factory overhead to production.…

A: Overhead rate = Budgeted factory overhead  /Budgeted direct labor cost = $800,000 / $1,000,000 =…

Q: Kecilyn Manufacturing uses the direct labor cost method for applying factory overhead to production.…

A: Overhead rate = Budgeted factory overhead cost / Budgeted direct labor costs =800000/1000000 = P0.80

Q: The following information was gathered for Larsen Corp. for the year ending 20xx.   Budgeted…

A: Direct Labors are those labors which are directly involved in a company's workforce for production…

Q: Teel Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in…

A: The budget indicates the estimated value of financial elements determined by the management by…

Q: Cherokee Company applies factory overhead on the basis of direct labor hours. Budget and actual data…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: In October, Pine Company reports 20,600 actual direct labor hours, and it incurs $257,000 of…

A: overhead volume  variance  =  Standard hours  - normal hours) × fixed overhead  rate

Q: World Company expects to operate at 80% of its productive capacity of 56,250 units per month. At…

A: Standards are established in advance in respect of sales, cost, efficiency, etc. From the standards,…

Q: In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is budgeted for…

A:

Q: Tiffany charges manufacturing overhead to products by using a predetermined application rate,…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Predetermined overhead rate = Budgeted overhead / Budgeted volume of direct labor hours = P300,000 /…

Q: The following information relates to the Finishing department of Tom company for the fourth quarter:…

A:

Q: Assume the following five facts: • budgeted fixed manufacturing overhead for the coming period of…

A: Predetermined plantwide overhead rate = budgeted variable manufacturing overhead rate + budgeted…

Q: Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of…

A: Variance analysis shows the analysis of the difference between actual and budgeted overheads in the…

Q: The following information relates to the Finishing department of Tom company for the fourth quarter:…

A: Standard Costing is generally used to find out the variances of the various production expenses…

Q: Roget Factory has budgeted factory overhead for the year at $6,650,400. It plans to produce…

A: Factory overhead rate = Budgeted Overhead cost / Budgeted Direct labor hours

Q: Ikawna Corp uses machine hours as a base for its factory overhead rate. The following information is…

A: Solution: Applied FOH = FOH rate* Actual machine hour = 5* 265200 = 1,326,000

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.