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Langley Company Provided the Following Data

question 12

Essay

Langley Company provided the following data:
Budgeted overhead $100,000
Budgeted direct labour hours 10,000
Actual overhead $99,000
Actual direct labour hours 11,000
A. Calculate applied overhead.
B. Calculate the overhead variance. Is it overapplied or underapplied?


Definitions:

Cost of Goods Sold

Costs directly related to creating products that a company offers for sale.

Net Income

The amount of earnings left over after all expenses have been deducted from revenue, indicating the financial profitability of a business.

Gross Profit Method

A technique to estimate the inventory's value by deducting the cost of goods sold from the total sales revenue.

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