Predetermined overhead rate in applying overhead

Assignment Help Financial Accounting

Reference no: EM131250938

Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates:

Dept A Dept B

Direct Labor Cost $56,000 $33,000

Manufacturing Overhead $67,200 $45,000

Direct Labor-Hours 8,000 9,000

Machine Hours 4,000 15,000

What predetermined overhead rate would be used in Department A and Department B, respectively?

Reference no: EM131250938

Questions Cloud

The expense recognition principle requires expenses : According to the expense recognition principle, wages expense is recognized on the income statement when the wages are paid rather than when the employee provides the work. The expense recognition principle requires expenses to be recorded on the inc..

Explain five elements of critical thinking that you found : Explain at least five elements of critical thinking that you found in the reading material. Summarize the content and explain why you think it demonstrates good critical thinking skills.

Using the high-low method-the cost formula for maintenance : The following data pertains to activity and maintenance costs for two recent years: Using the high-low method, the cost formula for maintenance would be:

Evaluate the behavior of the value of stock market : Prepare a graph in excel where present the movement of the value of each action to the period. Indicate therein the areas where change is more drastic and that happened that day that could cause this change.

Predetermined overhead rate in applying overhead : Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, What predetermined ..

Is there a unique nash equilibrium in this game : ABC and XYZ are the only two firms selling gizmos in Europe. The following table shows the profit (in millions of euros) that each firm earns at different prices (in euros per unit). ABC's profit is the left number in each cell; XYZ's profit is th..

Find all of the nash equilibria in this game : It is the year 2099, and the moon has been colonized by humans. Alcatel (the French telecom equipment company) and Nokia (the Finnish telecom equipment company) are trying to decide whether to invest in the first cellular telecommunications system..

Same direction or in different directions : a. Explain in words what you are showing with your graph. b. According to your graph, what happened to the value of the dollar vis-à-vis the French franc in the early 1980s? c. Did the French and American policies push the $/FF exchange rate in th..

Identify global societal issue you have chosen to research : Identify the global societal issue you have chosen to research for your Final Argumentative Essay (The Death Sentence attached) and explain why further research on this topic is important.

User Account

All Pages