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Overhead Allocation Mindmapp

A mind map is a diagram that visually organizes information in a hierarchical structure showing relationships among parts of a whole. It radiates from a central concept or idea and branches out to illustrate associated concepts. Mind maps use images, words, and parts of speech to depict semantic connections and build upon the central theme.

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Femy Demetria
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71 views

Overhead Allocation Mindmapp

A mind map is a diagram that visually organizes information in a hierarchical structure showing relationships among parts of a whole. It radiates from a central concept or idea and branches out to illustrate associated concepts. Mind maps use images, words, and parts of speech to depict semantic connections and build upon the central theme.

Uploaded by

Femy Demetria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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d if A mind map is a diagram used to visually organize

p lie information. A mind map is hierarchical and shows


erap eater relationships among pieces of the whole
und s gr Debit Bal.- means OH is underapplied/ OH
PRODUCT
is H i d assigned in WIP less than OH incurred
OH O lie
M tulal a pp Credit Balance- means OH is overapplied; OH
Ac than assigned in  WIP greater than OH incurred

Underapplied- less OH is applied than


p plied
L- undera
OOH ADS
IMM A TE R IA incurred; OH cost understated; Actual
to CGS COMMON ACTIVITY
FLYERS BASED
OH debited OH cost was more than expected
PACKAGING DL Hrs,
O H
Overapplied Overapplied- more OH MAchine HoursPRESS SEEDING
AVAILABILITY
G S
credited to C 0 0 ) PRICE OH cost overstated;
Sapplied;
Material Cost
PRESS LAUNCH
-2 5 G Units Production Once OH allocation rate determined
ld to CO Actual OH cost less than
5 00 So H Size/WeightPOSTERS
of can allocate OH to individual units
2 od s O TRADITIONAL
H -
f G o pp lied expected production
produced
MO ost o
BTL ADS
ra
C er ove
ra nsf OVERHEAD Predetermined OH Rate= Budgeted USD
(T
ALLOCATION MOH/ Budgeted Activity level
MOH Allocation
Rate Predetermined OH Rate Dual Application

BUDGET
ALLOCATION
Determined the
MARKET SHARE level of Capacity CUSTOMERS
KPIS STAKEHOLDERS
SALES REVENUE INTERNAL

Normal Capacity- meet ave. customer demand; Practical Capacity- assume sell all capable output
UNITS SOLD
stabilize OH rate to apply OH production;cost produce 1 Theoretical level- idle time & machine down, personal
unit not be higher in one acctg period as production was needs, day off/holidays
lower & FC were spread over fewer units Expected Capacity (Master Budget Capacity Utilization)-
output expected based on expected demand; result in diff.
Expected capacity fluctuates above or OH based on inc/dec on demand Theoritical- Practical
below normal volume Practical- Normal femydemetria.com

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