Koebel Corporation uses a job order cost system with manufacturing overhead applied to products on the...
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Koebel Corporation uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Koebel Corporation estimated total manufacturing overhead cost at $621,600 and total direct labor hours of 51,800. Koebel Corporation started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the year, actual manufacturing overhead incurred was $606,100 and 48,500 direct labor hours were used. Required: a. Calculate the predetermined overhead rate. b. Calculate how much manufacturing overhead will be applied to production. c. Is overhead over- or underapplied? By how much? d. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased? Koebel Corporation uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Koebel Corporation estimated total manufacturing overhead cost at $621,600 and total direct labor hours of 51,800. Koebel Corporation started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the year, actual manufacturing overhead incurred was $606,100 and 48,500 direct labor hours were used. Required: a. Calculate the predetermined overhead rate. b. Calculate how much manufacturing overhead will be applied to production. c. Is overhead over- or underapplied? By how much? d. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?
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a To calculate the predetermined overhead rate divide the estimated total manufacturing overhead cos... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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