contestada

Benton Lamps applies overhead using direct labor hours. Budgeted total overhead cost was $472,000 and estimated direct labor hours were 118,000 for the first quarter. The standard direct labor quantity is 4 hours per lamp, and the company produced 9,800 lamps in January. This required 39,500 direct labor hours. What amount should be used for overhead applied in the total overhead variance calculation?

Respuesta :

facundobuzzetti

Answer:

Allocated MOH= $158,000

Explanation:

Giving the following information:

The standard direct labor quantity is 4 hours per lamp, and the company produced 9,800 lamps in January. This required 39,500 direct labor hours.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4*39,500= $158,000

To calculate your cost object's applicable overhead, multiply the overhead allocation rate by the actual activity level. In the overall overhead variance computation, $ 156,800 should be used for overhead.

What is the predetermined overhead rate?

To figure out the predefined overhead rate, do the following:

Divide budgeted overhead costs of $472,000 by estimated direct labor hours of 118,000 to yield an [tex]\frac{4}{DLH}[/tex] overhead rate.

[tex]\text{Applied overhead at standard hours allowed} = $4 x 9,800 x 4 = $156,800 \text{ dollars }[/tex]

For more information about overhead variance, refer below

https://brainly.com/question/23318894

Otras preguntas