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A company has deaded to use Machine Hours (MHs) as the most appropriate cost driver to allocate overheads (OHUs) in their small manufacturing company. At
A company has deaded to use Machine Hours (MHs) as the most appropriate cost driver to allocate overheads (OHUs) in their small manufacturing company. At the beginning of the year, the company A a predetermined overhead rate (POHR) for each Machine Hour used on jobs during the period. REQUIRED: Using the information provided, calculate whether the overhead would have been OVER or UNDER applied in this period and using this amount ENTER THE CORRECT JOURNAL ADJUSTMENT TO THE COST OF GOODS SOLD (COGS) ACCOUNT INCLUDING EITHER A DR OR CR TO INDICATE THE CORRECT ENTRY. (e.g. If you wish to debit COGS by $1,000 only enter 1000DR or 1000CR to Credit COGS - Do not enter dollar ($) symbols, commas or full words 'debit etc) Budgeted Annual OHDS $371,511 Budgeted Annual Cost, Driver Activity Level 5897 MH Actual Activity Level 5650 MH Actual OHDS $373,748
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