Question

Exercise 11-12 (Part Level Submission) (Video) Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 125,000 units per year. The total budgeted overhead at normal capacity is $1,062,500 comprised of $437,500 of variable costs and $625,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours. During the current year, Byrd produced 73,100 putters, worked 86,700 direct labor hours, and incurred variable overhead costs of $186,405 and fixed overhead costs of $562,350. Collapse question part (a) Correct answer. Your answer is correct. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g. 2.75.) Variable Fixed Predetermined Overhead Rate $Entry field with correct answer 3.5 $Entry field with correct answer 5 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 3 used Collapse question part (b) Compute the applied overhead for Byrd for the year. Overhead Applied $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Req a:
Budgeted labor hours(125000*1): 125000
Pre-determined OH rate:
Variable
Budgeted variable oH				437500
Divide: Budgeted DLH				125000
Pre-determined Variable Oh rate per DLH				3.5
Fixed
Budgetd Fixed Overheads				625000
Divide: Budgeted DLH				125000
Pre-determined Fixed OH rate per DLH				5
Req b:
Actual lbour hours:				86700
Pre-determined Variable OH rate				3.5
Pre-determined Fixed Oh rate				5
Variable OH applied				303450
Fixed OH applied				433500
Total OH applied				736950