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The total budgeted costs in an indirect-cost pool divided by the total budgeted quantity of cost-allocation base.

For example: Manufacturing overhead = 900.000 and 25.000 machine hours.

--> 900.000/25.000 = 36 dollar per machine hour

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How do you calculate under and over applied OH?

To calculate under or overapplied overhead, subtract the actual overhead costs from the applied overhead costs. If the actual overhead costs exceed the applied overhead costs, it is overapplied. If the applied overhead costs exceed the actual overhead costs, it is underapplied.


Abel companys manufacturing overhead is 20 percent of its total conversion costs If direct labor is 38000 and if direct material are 47000 the manufacturing overhead is?

Well, honey, if manufacturing overhead is 20% of total conversion costs, and direct labor is $38,000 and direct materials are $47,000, then total conversion costs would be $38,000 + $47,000 = $85,000. So, if manufacturing overhead is 20% of that, it would be 0.20 x $85,000 = $17,000. So, the manufacturing overhead would be $17,000.


How fixed manufacturing overhead costs shifted from one period to another under absorption costing.?

What arguments are there in favor of treating fixed manufacturing overhead costs as product costs? As period costs?


A debit balance in the manufacturing overhead account at year end means?

It means you have incurred more actual manufacturing overhead costs than you have applied to your products (i.e., manufacturing overhead is underapplied).


Is salary of factory manager a period cost?

Salary of factory manager is Manufacturing overhead. and Manufacturing overhead is Product costs. So, It's not period cost.


What is One potential cause of Total Manufacturing Overhead Variance?

If the estimated materials, labor or overhead costs allocated for a manufacturing order is different from the actual cost of the MO then the potential result is a Manufacturing Overhead Variance.


What is overhead in accounting?

Overheads costs are indirect manufacturing costs which are not directly allocatable to units of products.


The entry to allocate manufacturing overhead costs to work in process requires a debit to work in process inventory?

Assume you have manufacturing overhead 5,000Journal Entry would be:Dr. Work in Process ---------5,000Cr. Manufacturing Overhead ----------5,000


What is the formula to calculate conversion costs?

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What is plant overhead cost?

plant overhead cost, also called manufacturing overhead or factory burden, is the total cost involved in operating all production facilities of a manufacturing business. It generally applies to indirect labor and indirect cost, it also includes all costs involved in manufacturing with the exception of the cost of raw materials and direct labor. Factory overhead also includes certain costs such as quality assurance costs, cleanup costs, and property insurance premiums


What is Overhead cost?

plant overhead cost, also called manufacturing overhead or factory burden, is the total cost involved in operating all production facilities of a manufacturing business. It generally applies to indirect labor and indirect cost, it also includes all costs involved in manufacturing with the exception of the cost of raw materials and direct labor. Factory overhead also includes certain costs such as quality assurance costs, cleanup costs, and property insurance premiums


What is a selling directly to consumer with costs included to cover manufacturing advertising and overhead?

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