(SOLVED) The following annual data relate to Facsimile Printing Pty Ltd


Question Description:

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The following annual data relate to Facsimile Printing Pty Ltd:
Budgeted machine hours……………………….15,000
Budgeted direct labour hours…………………..30,000
Budgeted direct labour cost…………………$420 000
Budgeted manufacturing overhead………….$546,000
During the month of June the firm worked on three products-business cards, wedding invitations and promotion flyers-using the following inputs:
Actual manufacturing overhead costs for June were $51 000 and the actual direct labour rate was $22.50 per hour.
Required:
Assume that the firm uses machine hours as its overhead cost driver:
1. Calculate the firm’s predetermined plantwide overhead rate.
2. Estimate the overhead costs of each of the three products.
3. Compare the actual overhead cost to the amount of overhead applied to the three products in June.

Answer

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