Determine amount of overhead that would be applied to output

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Mosbach 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 ofthe period. Data concerning the most recent year are as follows:

Budgeted production [Motors] .................... 25000

Standard machine-hours per motor ......... 2

Budgeted machine-hours [2*25000 motors] 50000

Actual production {Motors} ...................... 20000

Standard machine-hours alowed for actual production 40000

Actual machine-hours .................... 41500

Budgeted variable manufacturing overhead . . . $ 35,000

Budgeted fixed manufacturing overhead ..... $ 300,000

Total budgeted manufacturing overhead ...... $ 335,000

Actual variable manufacturing overhead ...... $ 32,500

Actual ?xed manufacturing overhead ......... $ 305,000

Total actual manufacturing overhead ......... $ 339,800

Required:

Problem 1. Compute the predetermined overhead rate for the year - both variable and ?xed.

Problem 2. Determine the amount of overhead that would be applied to the output of the period.

Problem 3. calculate budget and volume variance

Reference no: EM132728297

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