Actual Fixed Overhead Is $33,300 (12,000 Machine Hours)and Fixed Overhead

question 183

Multiple Choice

Actual fixed overhead is $33,300 (12,000 machine hours) and fixed overhead was estimated at $34,000 when the predetermined rate of $3.00 per machine hour was set.If 11,500 standard hours were allowed for actual production,applied fixed overhead is

• A)$33,300.
• B)$34,000.
• C)$34,500.
• D)not determinable without knowing the actual number of units produceD.

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Definitions:

Sum-Of-The-Years'-Digits

A method of accelerated depreciation calculating an asset's depreciation expense based on its remaining useful life, leading to higher depreciation charges in the early years.

Depreciation Expense

Depreciation expense is the charge recognized in each accounting period for the cost of an asset's decline in value due to use or obsolescence over time.

Residual Value

The estimated value of an asset at the end of its useful life, relevant in depreciation calculations and lease contracts.

150%-Declining-Balance

A method of accelerated depreciation which computes depreciation expense at 150% of the straight-line rate.