Actual costs and normal costs.Canyon Ridge Company uses a predetermined rate for applying overhead to production using normal costing.The rates for Year 1 follow: variable,200 percent of direct labor dollars;fixed,300 percent of direct labor dollars.Actual overhead costs incurred follow: variable,$20,000;fixed,$26,000.Actual direct materials costs were $5,000,and actual direct labor costs were $9,000.Canyon Ridge produced one job in Year 1.
Required:
a.Calculate actual costs of the job.
b.Calculate normal costs of the job using predetermined overhead rates.
(Canyon Ridge Company;actual costs and normal costs. )

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The Answer of Actual costs and normal costs.Canyon Ridge Company uses a predetermined rate for applying overhead to production using normal costing.The rates for Year 1 follow: variable,200 percent of direct labor dollars;fixed,300 percent of direct labor dollars.Actual overhead costs incurred follow: variable,$20,000;fixed,$26,000.Actual direct materials costs were $5,000,and actual direct labor costs were $9,000.Canyon Ridge produced one job in Year 1.
Required:
a.Calculate actual costs of the job.
b.Calculate normal costs of the job using predetermined overhead rates.
(Canyon Ridge Company;actual costs and normal costs. )

Actual Costs and Normal Costs