Developing Unit Costs Using Normal Costing
Not what you're looking for?
The Coastal Landscaping and Snow Removal company uses normal costing to assign overhead costs to the firm's various jobs. Labor is charged to jobs at $25 per hour and for the upcoming winter session, overhead is estimated at $200,000 for $10,000 hours of activity.
A. Using normal costing, what would be the total charge for removing snow from a mall parking lot that took four hours to clear?
B. If actual overhead costs are $215,000 and actual hours worked are 11,000, is overhead overapplied or underapplied?
Purchase this Solution
Solution Summary
This solution explains how to cost a product, given various factors, in Excel.
Solution Preview
** Please see the attached Excel file for the complete solution **
1 Calculation of overhead Aplication Rates
Cost Driver Predetermined Overhead Rate
Formula for overhead Rate Budgeted Overhead rate
Direct labor hours Budgeted overheads $200,000
Budgeted Direct labor hours 10000
Overhead application rate per hour $20
A Statement showing the total charge for removing snow from a mall parking lot.
Direct labor @ $25 per hour for 4 hours. $100
Overhead @$20 per hour for 4 hours $80
Total charge for removal of snow using normal costing. $180
B ...
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.