Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standa
ID: 2574495 • Letter: B
Question
Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 120,000 units per year. The total budgeted overhead at normal capacity is $ 840,000 comprised of $ 360,000 of variable costs and $ 480,000 of flxed costs. Byrd applies overhead on the basis of direct labor hours. During the current year, Byrd produced 87,000 putters, worked 98,700 direct labor hours, and incurred variable overhead costs of s 152,250 and fixed overhead costs of $ 556,000 Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places,e.g. 2.75.) Variable Predetermined Overhead Rate LINK TO TEXT VIDEO: SIMILAR EXERCISE VIDEO: APPLIED SKILLS Compute the applied overhead for Byrd for the year Overhead LINK TO TEXT VIDEOs SIMILAR EXERCISEVIDEOt APPLTED SKILLS Compute the total overhead variance Total Overhead VarianceExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Variable Fixed Total Budgeted Overhead 360,000.00 480,000.00 840,000.00 No of hours = 120,000*1 120,000.00 120,000.00 120,000.00 Predetermined overhead rate 3.00 4.00 7.00 Actual Labour hours 98,700.00 98,700.00 98,700.00 Applied overhead = Predetermined arte *98700 296,100.00 394,800.00 690,900.00 Actual Overhead 152,250.00 556,000.00 708,250.00 Overhead variance 143,850.00 (161,200.00) (17,350.00) F U U
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