Check my work 2 Privack Corporation has a standard cost system in which it appli
ID: 2569135 • Letter: C
Question
Check my work 2 Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: 14.28 points 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 $3.50 622,499 59,286 83,000 82,000 Hint Print References Red: 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. (Round your answer to the nearest whole dollar amount.) 2. Compute the amount of overhead that would be applied to the output of the period. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 1. Predetermined overhead rate per DLH 2. Overhead appliedExplanation / Answer
Requirement 1:
Computation of Predetermined Overhead rate
Particulars
Amount
Total Fixed Overhead Cost per year
$ 622,499
Total Variable overhead Cost($3.50 per DLH x 59,286 DLHs)
$ 207,501
Total Overhead
$ 830,000
Predetermined Overhead rate:
Total Overhead/ Level of Activity($824,071/59,286 DLH s)
$ 14.00
Requirement 2:
Computation of Overhead Applied
Particulars
Amount
Actual Output
83,000
Predetermined Overhead rate
$ 14.00
Overhead Applied (83,000 DLH s x $14.00)
$ 1,161,994.40
Computation of Predetermined Overhead rate
Particulars
Amount
Total Fixed Overhead Cost per year
$ 622,499
Total Variable overhead Cost($3.50 per DLH x 59,286 DLHs)
$ 207,501
Total Overhead
$ 830,000
Predetermined Overhead rate:
Total Overhead/ Level of Activity($824,071/59,286 DLH s)
$ 14.00