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Schrader, Inc uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year ended December 31, 2010.
Required:
a. Determine the budgeted factory overhead rate based on direct-labor costs (show as a percentage).b. Determine the budgeted factory overhead rate based on direct-labor hours (show as $/hr).c. What is the applied overhead based on direct-labor costs?d. What is the applied overhead based on direct-labor hours?e. Assuming the variance is immaterial, give the journal entry to write off the variance based on direct-labor hours.
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