Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4]Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Dataconcerning the most recent year appear below:Budgeted variable overhead cost per direct labor-hourTotal budgeted fixed overhead cost per yearBudgeted direct labor-hours (denominator level of activity)Actual direct labor-hoursStandard direct labor-hours allowed for the actual outputRequired:1. Predetermined overhead rate2. Overhead applied$ 4.00$ 528, 1801. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the totalbudgeted variable overhead in the numerator of your rate.Note: Round your answer to the nearest whole dollar amount.2. Compute the amount of overhead applied to the output of the period.Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.per DLH75,45586,00081,000

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Description: Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4]Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Dataconcerning the most recent year appear below:Bu

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Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Data concerning the most recent year appear below: Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output. Required: 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. Note: Round your answer to the nearest whole dollar amount. 2. Compute the amount of overhead applied to the output of the period. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. 1. Predetermined overhead rate 2. Overhead applied $ 4.00 $ 528, 180 per DLH 75,455 86,000 81,000

Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Data concerning the most recent year appear below: Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output. Required: 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. Note: Round your answer to the nearest whole dollar amount. 2. Compute the amount of overhead applied to the output of the period. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. 1. Predetermined overhead rate 2. Overhead applied $ 4.00 $ 528, 180 per DLH 75,455 86,000 81,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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