From the Following Details Provided by NutShell Inc Fixed Overhead Costs

question 45

Essay

From the following details provided by NutShell Inc., prepare the manufacturing overhead budget for the year 2015.
$$\begin{array} { l c c c c } & \text { First } & \text { Second } & \text { Third } & \text { Fourth } \\& \text { Quarter } & \text { Quarter } & \text { Quarter } & \text { Quarter } \\\text { Budgeted production units } & 15,000 & 18,000 & 21,000 & 24,000 \\\text { Variable overhead cost per unit } & \$ 45 & \$ 45 & \$ 45 & \$ 45\end{array}$$ Fixed overhead costs:
$$\begin{array} { l l l l l } \text { Depreciation } & \$ 3,000 & \$ 3,000 & \$ 3,000 & \$ 3,000 \\\text { Supplies, insurance } & 5,000 & 5,750 & 6 , 2 5 0 & 7,250 \\\text { Direct labor hours } & 12,500 & 7,500 & 17,200 & 12,800\end{array}$$ Prepare the manufacturing overhead budget for the year 2015. Also, calculate the overhead allocation rate, using direct labor hours as the allocation base.

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Definitions:

Null Hypothesis

The default position that there is no relationship between two measured phenomena or no association among groups.

Alternative Hypothesis

In hypothesis testing, the hypothesis that contradicts the null hypothesis, usually suggesting that a new theory or intervention has an effect.

P-value

A statistical measure that indicates the probability of the observed data, or more extreme, assuming that the null hypothesis is true.

Null Hypothesis

A statement or hypothesis that assumes no statistical significance exists in a set of given observations, serving as the default assumption to be tested.