Question & Answer: ack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours al…..

EXERCISE 11A-3 Applying Overhead in a Standard Costing System (L011-4] Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below

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EXERCISE 11A-3 Applying Overhead in a Standard Costing System (L011-4] Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below

Expert Answer

 

Statementshowing Computations
Paticulars Amount
Variable overhead per DL hour                         2.00
Fixed Overhead per DL hour = 250,000/40000                         6.25
Predetrmined overhead rate                         8.25
2)
Amount of overhead to be applied= 38000*8.25            313,500.00
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