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1. The Alphonse Company assign fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the starting of the year the company expects fixed overhead costs to be $600,000 and variable costs to be $800,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. The actual fixed overhead costs are $700,000 and the actual variable overhead costs are $750,000. The actual machine hours during year are 5,500 and the actual direct labor hours are 90,000.
a. Find how much overhead is allocated?b. Evaluate what is the over/under absorbed overhead?
2. Standard quantities are generally defined by the technical characteristics of the _________ and are often estimated by industrial engineering studies that inspect how long a particular manufacturing process takes or how much raw material is required to produce the product.
a. standard costb. materials soldc. labor varianced. production process
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