Discuss how variable and fixed overhead application rates are calculated
The variable overhead application rate is calculated by dividing total budgeted variable overhead by its related level of activity. Any level of activity within the relevant range may be selected since VOH cost per unit is constant throughout the relevant range. The fixed overhead application rate is calculated by dividing total budgeted fixed overhead by the specific capacity level expected for the period.
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Which of the following is an example of an informational question that you should avoid?
a. "How are you doing this morning?" b. "All right, so you started here in June 2003—after working for Caterpillar—to the best of your recollection?" c. "Didn't you suspect that something wasn't right?" d. "What are your duties here?" e. "Please tell me about your job.".
During the closing process, revenues are transferred to the debit side of the Income Summary account
Indicate whether the statement is true or false
All of the following statements related to preparation of the statement of cash flows are true except:
A. A company may report cash flows from operating activities using either the direct or indirect method. B. Interest expense may be reported under operating or financing based on which one results in better cash flows. C. Cash dividends paid to shareholders are classified as a financing activity. D. Repaying the principal of notes payable is classified as a financing activity. E. Purchase of an intangible asset is classified as an investing activity.
Chaos theory involves concepts known as ______.
A. the butterfly effect B. nonlinearity C. turbulence D. all of these