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 |