Samsonite Corp. uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year ended December 31, 20X1. Required:
a. Determine the budgeted factory-overhead rate based on direct-labour costs.
b. Determine the budgeted factory-overhead rate based on direct-labour hours.
c. What is the applied overhead based on direct-labour costs?
d. What is the applied overhead based on direct-labour hours?
e. Assuming the variance is immaterial, give the journal entry to write off the variance based on direct-labour hours.

Question

Samsonite Corp. uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year ended December 31, 20X1.  Required:
a. Determine the budgeted factory-overhead rate based on direct-labour costs.
b. Determine the budgeted factory-overhead rate based on direct-labour hours.
c. What is the applied overhead based on direct-labour costs?
d. What is the applied overhead based on direct-labour hours?
e. Assuming the variance is immaterial, give the journal entry to write off the variance based on direct-labour hours.

Quizplus · Accepted Answer

The Answer of Samsonite Corp. uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year ended December 31, 20X1.  Required:
a. Determine the budgeted factory-overhead rate based on direct-labour costs.
b. Determine the budgeted factory-overhead rate based on direct-labour hours.
c. What is the applied overhead based on direct-labour costs?
d. What is the applied overhead based on direct-labour hours?
e. Assuming the variance is immaterial, give the journal entry to write off the variance based on direct-labour hours.