Samsonite Corp

question 13

Essay

Samsonite Corp. uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year ended December 31, 20X1. Required:
a. Determine the budgeted factory-overhead rate based on direct-labour costs.
b. Determine the budgeted factory-overhead rate based on direct-labour hours.
c. What is the applied overhead based on direct-labour costs?
d. What is the applied overhead based on direct-labour hours?
e. Assuming the variance is immaterial, give the journal entry to write off the variance based on direct-labour hours.

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Definitions:

Performance Deficiencies

Gaps between an employee's actual job performance and the expected or desired performance levels.

Affective Outcome

Emotional responses or feelings resulting from an event, intervention, or experience within an organizational context.

Camaraderie

A sense of trust, friendship, and teamwork among members of a group.

Skill-Based Outcome

The result or achievement that demonstrates the application or improvement of specific skills.