Anaya Corporation allocates manufacturing overhead using a predetermined rate based on machine-hours used. At the beginning...
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Anaya Corporation allocates manufacturing overhead using a predetermined rate based on machine-hours used. At the beginning of 2022, Anaya estimated manufacturing overhead of $358,000 and 20,000 machine-hours for the year. The company incurred actual manufacturing overhead of $382,000 and 18,300 total machine-hours during the period. Compute: a. The predetermined overhead rate. b. The amount of overhead applied to jobs during the period. c. The amount of overhead over or under-applied. Anaya Corporation allocates manufacturing overhead using a predetermined rate based on machine-hours used. At the beginning of 2022, Anaya estimated manufacturing overhead of $358,000 and 20,000 machine-hours for the year. The company incurred actual manufacturing overhead of $382,000 and 18,300 total machine-hours during the period. Compute: a. The predetermined overhead rate. b. The amount of overhead applied to jobs during the period. c. The amount of overhead over or under-applied.
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a The predetermined overhead rate is calculated as follows Predetermined overhead rate Estimated ... View the full answer
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
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