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    KerriB's Avatar
    KerriB Posts: 3, Reputation: 1
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    #1

    May 13, 2008, 08:29 AM
    What is the applied overhead based on Direct-labor costs?
    Data available for the year:

    Budgeted factory overhead $675,000
    Actual factory overhead $ 726,000
    Budgeted direct-labor costs $ 450,000
    Actual diret-labor costs $ 482,000

    End of year balances:

    Materials Inventory $ 120,000
    WIP inventory $ 100,000
    Cost of Goods sold $ 150,000
    Finished goods inventory $ 250,000

    What is the applied overhead based on direct-labor costs?

    Prorate the overhead variance to the appropriate accounts.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 14, 2008, 01:52 AM
    Overhead rate = estimated overhead costs/estimated activity base

    (Activity base can be things like machine hours, direct labor hours, direct labor dollars. The problem always tells you what to use.)

    Applied overhead = rate from above x actual activity base.

    Please make an attempt to do your own work, and then we can help you.
    KerriB's Avatar
    KerriB Posts: 3, Reputation: 1
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    #3

    May 15, 2008, 07:31 AM
    Quote Originally Posted by morgaine300
    Overhead rate = estimated overhead costs/estimated activity base

    (Activity base can be things like machine hours, direct labor hours, direct labor dollars. The problem always tells you what to use.)

    Applied overhead = rate from above x actual activity base.

    Please make an attempt to do your own work, and then we can help you.




    Thank you for your information to get this problem resolved and I didn't know where to begin to answer this question and believe me I have attempted to do this problem.

    Thanks!
    higity's Avatar
    higity Posts: 2, Reputation: 1
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    #4

    Sep 19, 2010, 09:47 PM
    723000
    higity's Avatar
    higity Posts: 2, Reputation: 1
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    #5

    Sep 19, 2010, 09:49 PM
    723000
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #6

    Sep 19, 2010, 11:26 PM

    higity, the thread is 2 years old & I'm closing it.

    We also do not just provide answers to people's homework for them. Please read the guidelines we have about homework:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
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