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

question 132

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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Definitions:

National Curve Equivalent

A standardized score that represents a student's relative rank on a national scale.

Normal Curve

The normal curve, or normal distribution, is a bell-shaped curve that shows the probability distribution of a continuous random variable, with most occurrences happening near the mean.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values around the mean (average) of the set.

Raw Scores

Pure data collected from assessments or tests before any processing or normalization.