Which of the Following Is a Characteristic of Actual Overhead
Which of the following is a characteristic of actual overhead using normal costing?
A)It is recorded to the overhead control account at the beginning of the period.
B)It is reconciled at the end of a period with applied overhead.
C)It is separated into many smaller accounts, such as indirect labour and supplies.
D)It is estimated easily at the beginning of the period.
What formula is used to calculate the predetermined overhead rate?
A)estimated annual overhead / estimated annual activity level
B)actual annual overhead / estimated annual activity level
C)estimated annual overhead / actual annual activity level
D)actual annual overhead / actual annual activity level
When is the predetermined overhead rate usually calculated?
A)at the end of each month
B)at the beginning of each month
C)at the beginning of the year
D)at the end of the year
Whitney Company uses a predetermined rate to apply overhead.At the beginning of the year,Whitney estimated its overhead costs at $280,000,direct labour hours at 40,000,and machine hours at 10,000.Actual overhead costs incurred were $289,000,actual direct labour hours were 41,000,and actual machine hours were 11,000. Suppose the predetermined overhead rate is based on machine hours.What would be the total amount credited to the factory overhead account for the year for Whitney?