Sorry Barry was a little busy with work.
If you look at page 320, where they give you all of the numbers for Glascow, it indicates that the Manufacturing Overhead is applied at $18/hour, and then it gives you the breakdown. Variable is $6 dollars of the $18 dollars, which means that 33% of the manufacturing overhead is variable, so you apply that 33% to the $9 manufacturing overhead to get $3.
Hope this makes sense.
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Shepal Patel CFE
Controller
Rossmoor CA
United States
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Original Message:
Sent: 03-24-2019 09:53 PM
From: Amedee Barry
Subject: CMA Part 2 Gleim page 321 question 5 ch 10
Hello all,
I am currently studying for part 2 using Gleim. I cannot understand the MCQ in ch 10 in the end of the chapter. For MCQ #5 how is the problem calculating the $3 for overhead? I understand the cost of labor and direct material, but I do not understand how the overhead of $3 is being calculated from the problem on page 320
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Amedee Barry
Accountant
South Pasadena CA
United States
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