Asked by Perla Arceo-Valencia on Jul 08, 2024

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The budgeted fixed manufacturing overhead cost was:

A) $15,200
B) $16,000
C) $16,550
D) $13,700
E) $14,400

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct materials and direct labor costs.

Budgeted Fixed

Refers to the portion of a budget that represents fixed costs, which do not change with the level of activity within a certain range.

  • Calculate the predetermined overhead rate.
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MV
Miloslav VojtaJul 08, 2024
Final Answer :
B
Explanation :
Fixed overhead applied to work in process = $2.00 per DLH × 4.0 DLHs per unit × 1,900 units = $15,200
Volume variance = Budgeted fixed overhead - Fixed overhead applied to work in process
$800 U = Budgeted fixed overhead - $15,200
$800 = Budgeted fixed overhead - $15,200
Budgeted fixed overhead = $15,200 + $800 = $16,000
Reference: APP10A-Ref20
(Appendix 9A)Weyers Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: Fixed overhead applied to work in process = $2.00 per DLH × 4.0 DLHs per unit × 1,900 units = $15,200 Volume variance = Budgeted fixed overhead - Fixed overhead applied to work in process $800 U = Budgeted fixed overhead - $15,200 $800 = Budgeted fixed overhead - $15,200 Budgeted fixed overhead = $15,200 + $800 = $16,000 Reference: APP10A-Ref20 (Appendix 9A)Weyers Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: