Reference no: EM132502017

The Manufacturing Plant manufactures new and replacement screens. The plant produces more than 500 different screen sizes and offers four different aluminum frame colors. Plant overhead is absorbed to each screen produced using the square inches of the screen as the allocation base. (For example, a screen with dimensions 20 7/32 width 38 21/32 height has 781.581 square inches.) The single plant wide overhead rate, estimated before the year begins, is based on a flexible budget (budgeted fixed overhead plus budgeted variable overhead) divided by budgeted volume. Volume is measured in square inches of the screens produced.

The following values summarizes operations for the year:

Budgeted variable overhead (per sq. in.) $0.01

Actual overhead incurred $4,287,482

Budgeted fixed overhead $3,594,240

Over absorbed overhead $797,759

Actual volume (sq. in.) 1412,56,700

Required:

Question 1: Calculate the budgeted volume amount (in screen square inches) Plant used in computing the plant wide overhead rate for the year.