Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:

- Calculate the applied fixed overhead.
A) $973,080
B) $855,030
C) $964,000
D) $910,000
E) None of these.

Question

Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:

- Calculate the applied fixed overhead.

-  Calculate the applied fixed overhead.
A) $973,080 
B) $855,030 
C) $964,000 
D) $910,000 
E) None of these.

Quizplus · Accepted Answer

$1.02 × 954,000 = $973,080

Kris Company Calculates Its Predetermined Rates Using Practical Volume, Which