The Following Information Was Gathered for Zeba Company for the Year

question 190

Essay

The following information was gathered for Zeba Company for the year ended December 31,2014
$$\begin{array} { l c c } & \underline { \text { Budgeted } } & \text { Actual } \\\text { Direct labor-hours } & 50,000 \text { dlh } & 60,000 \text { dlh } \\\text { Factory overhead } & \$ 550,000 & \$ 600,000\end{array}$$ Assume that direct labor-hours are the cost-allocation base.
Required:
a.Compute the budgeted factory overhead rate.
b.Compute the factory overhead applied.
c.Compute the amount of over/underapplied overhead.

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Definitions:

Incentive To Work

Refers to the factors (monetary and non-monetary) that motivate individuals to seek and maintain employment.

Negative Income Tax

A proposed system of income support that involves the government paying a guaranteed income to those earning below a certain threshold, essentially a form of welfare.

Two-Tiered Plan

An arrangement or plan that has two levels of operation, benefits, or charges, often used in healthcare, compensation, or service delivery models.

Libertarians

Individuals who advocate for minimal government intervention in the private lives of citizens and emphasize individual freedom and voluntary association.