Mallett Manufacturing estimates the following activity for 2013:• Expected production XXXXXXXXXXunits• Expected direct labour hours 5000 hours• Expected manufacturing overhead $200...

Mallett Manufacturing estimates the following activity for 2013: • Expected production 50 000 units • Expected direct labour hours 5000 hours • Expected manufacturing overhead $200 000. Manufacturing overhead is allocated on the basis of direct labour hours. At the end of the financial period, the following information was collected: • Direct labour hours 4000 hours • Manufacturing overhead $220 000. Required: a. Calculate the predetermined indirect cost rate at the beginning of 2013. b. Calculate the actual indirect cost rate for 2013. c. Explain why a variance would need to be calculated and shown in the financial records. View Solution:

Mallett Manufacturing estimates the following activity for 2013 Expected production