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In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in-process inventory.

Eagle Company applies factory overhead in its two producing departments using a predetermined rate based on budgeted machine hours in the Blending Department and based on budgeted labor hours in the Containerizing Department. Variable cafeteria costs are allocated to the producing departments based on budgeted number of employees, and fixed costs are allocated based on the capacity number of employees. Variable maintenance costs are allocated on the budgeted number of direct labor hours, and fixed costs are allocated on labor hour capacity. The data concerning next year’s operations are as follows:   ​ ​   Support Departments Producing Departments Budgeted costs: Cafeteria Maintenance Blending Containerizing Variable costs $60,000 $84,000 $300,000 $324,000 Fixed costs  18,000  30,000  120,000  140,000 ​ Other data:        Direct labor hours (capacity) 10,000 20,000    Direct labor hours (budgeted) 8,000 16,000    Number of employees (capacity) 30 60    Number of employees (budgeted) 20 40    Machine hours (capacity) 33,000 66,000    Machine hours (budgeted) 20,000 60,000 ​ Required: ​ a. Prepare a schedule showing the allocation of budgeted support department costs to producing departments. b. Determine the predetermined overhead rate for the producing departments.

A debit balance in Overhead Control:

A predetermined overhead rate is calculated using which of the following formulas?

In order to determine product costs, JIT firms are usually structured so they can use:

A pure service organization has

Andover, Inc., has two producing departments. Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows:   Support department hours used:       Department X 12,000     Department Y  4,000         Total hours 16,000     Support department costs:       Actual support department costs $48,000     Budgeted fixed department costs $20,000     Budgeted variable rate per hour $    2.50 ​ Normal support department usage is 8,000 hours each for Department X and Department Y. Assuming the direct method is used and the purpose is performance evaluation, support department costs allocated to Department X are

CVP analysis is a short-run decision-making tool since some costs are fixed.

Assume the following information:   Volume Total Cost 100 units $1,300 90 units $1,500 106 units $1,750 ​ What is the variable cost per unit? (Round your answer to three decimal places.)

A debit balance in overhead control implies that actual overhead costs exceed overhead applied.