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1- 2- 3- Frenzy Company uses a predetermined overhead rate of 140% of direct labor costs. During the month, Frenzy incurred $90.000 of total factory
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Frenzy Company uses a predetermined overhead rate of 140% of direct labor costs. During the month, Frenzy incurred $90.000 of total factory labor costs $10,000 of which is for indirect labor. Actual overhead amounted to $119,000 for the month. The company's manufacturing overhead costs be: Under applied by $105.000 Over sopled by 320,000 Over oplied by 57.000 Under-applied by 57.000 Price Company assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Department shows 3.000 machine hours for the period. If the overhead rate is $5 per machine hour the entry to assign overhead will show a: credit to WIP -Cutting Department for $15.000 debit to WIP for $15.000 Odebit to WIP-Cutting Department for $9.000 credit to Manufacturing Overhead for $24.000 At the end of the period, any balance in the Manufacturing Overhead account should be: Transferred to Work in Process Inventory O Ignored Transferred to the Cost of Goods Sold account Transferred to the Income Summary 2-
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