Problem 11A-11 Applying Overhead; Overhead Variances [L011-3, LO11-4] Wymont Com
ID: 2467539 • Letter: P
Question
Problem 11A-11 Applying Overhead; Overhead Variances [L011-3, LO11-4] Wymont Company produces a single product that requires a large amount of labor time. Overhead cost is applied on the basis of standard direct labor-hours. Variable manufacturing overhead should be $4.60 per standard direct labor-hour and fixed manufacturing overhead should be $1,935,000 per year. The company's product requires 4 feet of direct material that has a standard cost of $9.50 per foot. The product requires 1.5 hours of direct labor time. The standard labor rate is $13.30 per hour. During the year, the company had planned to operate at a denominator activity level of 225,000 direct labor-hours and to produce 150,000 units of product. Actual activity and costs for the year were as follows: Number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred $789,750 Actual fixed manufacturing overhead cost incurred 2,047,500 180,000 292,500 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed components. (Round your answers to 2 decimal places.) Predetermined overhead rate Variable rate Fixed rate per DLH per DLH per DLHExplanation / Answer
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3.a
Predtermined Overhead Rate $13.20 per DLH Variable rate $4.60 per DLH Fixed rate $8.60 per DLH