Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Platinum Co. (above) is considering using a predetermined overhead rate based on capacity Capacity of the factory 64,000 Machine hours Manufacturing OH cost at

image text in transcribed
image text in transcribed
3. Platinum Co. (above) is considering using a predetermined overhead rate based on capacity Capacity of the factory 64,000 Machine hours Manufacturing OH cost at the capacity 256,000 Es Cost DOHR Compact If Platinum used the capacity based predetermined rate to apply manufacturing overhead cost, calculate the over or under-applied overhead cost for the month of July: A. Underapplied by 11,600 B. Overapplied by 11,600 C. Underapplied by 8,000 D. Overapplied by 8,000 E. None of the above 256000 - 4 64000 Applied Antal 3. Platinum Co. (above) is consider Capacity of the Manut 2-3. Platinum Co. is an English manufacturing company whose total factory somewhat from month to month according to the number of machine-hours facility. These costs (in English pounds) for the three months in summer are w the costs are incomplete. Level of Activity any whose total factory overhead costs fluctuate e number of machine hours worked in its production wree months in summer are given below. Unfortunately, NY August 51,150 Machine-hours Total factory overhead costs 46,500 214,700 62,000 236,400 The factory overhead costs above consist of indirect materials, rent and maintenance. The company has analyzed these costs at the 46,500 machine-hours level of activity as follows: Indirect materials (variable) 51,150 Rent (fixed) 123,000 Maintenance (mixed) 40,550 Total factory overhead costs 214,700 2. What total overhead costs would you expect the company to incur at an operating level for August? Use the High-Low Method. TOHC=Y= a + bx A. 68,545 B. 179,265 C. 195,030 D. 221,210 E. E236,170 scost A Activity 21700 - 1042 15500 = 109600 +(14) ($150 1496004 4610 236 400 = a + 1.32X62000) 236400 = at 86800 a = 236400 - 86.800 as 49 600 201210

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services An Integrated Approach

Authors: Alvin Arens

13th Edition

0136084737, 9780136084730

More Books

Students also viewed these Accounting questions