HA2011 Tutorial Questions On Management Accounting - Tutoring 1

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Week 5 Question (10 marks)

The following information relates to the Moonie Park Manufacturing Company for the year 2012.

  • Plant capacity 480,000 machine hours
  • Normal level of production 432,000 machine hours
  • Budgeted level of production 360,000 machine hours
  • Budgeted manufacturing overhead $2,160,000
  • Actual manufacturing overhead for the month of $175,000
  • Actual machine hours used for February 2012 35,000

Calculate the predetermined overhead rates per machine hour based on practical capacity, normal capacity and budgeted capacity respectively.

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