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Author Question: ERP systems have proved to be quite easy to install and in short periods of time. Indicate whether ... (Read 16 times)

rl

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on: Jul 5, 2018
ERP systems have proved to be quite easy to install and in short periods of time.
  Indicate whether the statement is true or false

Question 2

The following information was gathered for Zeba Company for the year ended December 31, 2014
 
  Budgeted Actual
   Direct labor-hours 50,000 dlh 60,000 dlh
   Factory overhead 550,000 600,000
 
  Assume that direct labor-hours are the cost-allocation base.
 
  Required:
  a. Compute the budgeted factory overhead rate.
  b. Compute the factory overhead applied.
  c. Compute the amount of over/underapplied overhead.


kjohnson

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Reply #1 on: Jul 5, 2018
Answer to Question 1

F

Answer to Question 2

Answer:
a. 550,000/50,000 hrs. = 11 per hour
b. 11  60,000 hrs. = 660,000
c. 600,000 - 660,000 = 60,000 overapplied


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