Sparkle Company Produces Ornamental Trees and Uses Normal Costing A Calculate Applied Overhead

question 36

Essay

Sparkle Company produces ornamental trees and uses normal costing.Sparkle applies overhead based on direct labour hours.The following data are provided: $$\begin{array} { l r r } & \text { Budgeted } & \text { Actual } \\\text { Overhead } & \$ 400,000 & \$ 392,000 \\\text { Machine Hours } & 20,000 & 18,000 \\\text { Direct Labour Hours } & 16,000 & 17,840 \\\text { Direct Materials Cost } & & \$ 521,000 \\\text { Direct Labour Cost } & & \$ 410,000 \\\text { Units Produced } & & 10,000\end{array}$$ A. Calculate applied overhead.
B. Calculate the unit cost.

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