Ley Corporation, a producer of paper bags, hires Zoey as a finance intern. As an intern, Zoey is tasked with collecting and comparing actual financial data with budgets. In the process, Zoey found that company neglected to plan for manufacturing overhead costs. Zoey's manager provided the following information, and asked her to prepare the manufacturing overhead budget:
If the company has a policy of maintaining zero work-in-progress, then what manufacturing overhead cost will Zoey calculate based on the information she was given?

Question

Ley Corporation, a producer of paper bags, hires Zoey as a finance intern. As an intern, Zoey is tasked with collecting and comparing actual financial data with budgets. In the process, Zoey found that company neglected to plan for manufacturing overhead costs. Zoey's manager provided the following information, and asked her to prepare the manufacturing overhead budget:
 If the company has a policy of maintaining zero work-in-progress, then what manufacturing overhead cost will Zoey calculate based on the information she was given?

Quizplus · Accepted Answer

Budgeted Cost of Manufacturing Overhead = Budgeted Cost of Goods Manufactured F1F1F1S1?F1F1F10 Budgeted Cost of Direct Material F1F1F1S1?F1F1F10 Budgeted Cost of Direct Labor = ($760 × 45%) - ($760 × 20%) F1F1F1S1?F1F1F10 ($760 × 10%) = $342 million F1F1F1S1?F1F1F10 $152 million F1F1F1S1?F1F1F10 $76 million = $114 million

Ley Corporation, a Producer of Paper Bags, Hires Zoey as a Finance