Wat is the cause of overapplied or underapplied overhead

Question

1. Why are some manufacturing firms switching from direct-labor hours to machine hours or throughput time as the basis for overhead application?

2. What is the cause of overapplied or underapplied overhead?

3. Briefly describe two ways of closing out overapplied or underapplied overhead at the end of an accounting period.

4. Describe how a large retailer such as Lowes could use EDI.

5. Explain how a Texas Instruments engineer might use bar code technology to record the time she spends on various activities.

Answer 1

As the showing questions which has best several manufacturing solids switching 1. Why are several manufacturing solids switching from direct-labor hours to mechanism hours or throughput time as the basis for overhead application? 2. What is the cause of over applied or under applied overhead? 3. In brief explain 2 ways of closing out over applied or under applied overhead at the end of an accounting period. 4. Illustrate how a large retailer such as Lowes could use EDI. 5. Explain how a Texas Instruments engineer might use bar code technology to record the time she spends on various activities.