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:

Task Variety

The degree to which a job involves different activities requiring various skills and talents.

Job Enlargement

The process of increasing the variety of tasks and responsibilities of a job to enhance motivation and satisfaction.

Job Breadth

The scope and variety of tasks, responsibilities, and activities within a particular job role.

Telecommuting

Working at home or from a remote location using computers and advanced telecommunications.