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Point 1: A manufacturing company uses a NORMAL COSTING SYSTEM (where the overhead costs are allocated to the WIP Account using a budgeted rate).
Point 2: They had budgeted annual overheads of $1011312 and budgeted annual machine hours (MH) of 15870 which they use as their main COST DRIVER.
Point 3: During the year, the company had an actual activity level of 15291 MH and the actual annual overhead was $1208486.
Question 1: Calculate by how much they had either over or under applied overhead.
Mattresses-A-Million produces Pillow-Top mattresses. They have been using a volume-based costing system to allocate overhead based on direct labor-hours. The Pillow-Top requires two hours of direct labor.
What was GHI's predetermined overhead rate (POHR)? GHI uses a job-order costing system and applies overhead costs using direct labour hours.
Compute the equivalent units for direct materials and conversion costs for December. Compute the unit costs for direct materials and conversion costs. Compute the cost of units completed for December.
Greed to buy each tray with a price of $30.00. By showing your calculations, decide of the price elasticity of this demand (elastic or inelastic).
What is the overhead controllable variance? Budgeted overhead for Markowitz Industries at normal capacity of 30,000 direct labor hours
Prepare a report showing the spending variances for April. Explain what these variances mean.
Using the contribution margin technique, compute the break-even point in dollars and in units. In the month of March, Crane Salon services 610 clients
Differentiate between functional based costing and activity based costing.
Cardenas Pharmaceutical produces antibiotics. Calculate April's output for the tableting department in equivalent units of production.
Computer requires 2 technician hours and 5 hours of direct labor. Direct labor is paid $14 per hour by the company. What is the cost of 1 technician hour?
How many equivalent units with respect to part HH887 would be represented in April's ending work-in-process inventory? Calculate total cost of direct material.
Find The amount of gross margin for the merchandise is. Barney Company uses the perpetual inventory system. The company purchased $4,000 of merchandise
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