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Asalla Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations: Required: Calculate
- Asalla Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations:
Required:
- Calculate the Predetermined Manufacturing Overhead Rate for the recently completed year.
- Compute the amount of over/under applied manufacturing overhead cost for the year.
- Write a note on the treatment of over/under applied manufacturing overhead cost (calculated in b) when calculating COGS and its impact on the companys gross margin and net income.
- List two differences between Job order costing and process costing. Give one example of business under each costing system.
- Define the following concepts:
- Variable cost
- Differential cost and revenue
- Margin of Safety in respect of units.
- Breakeven point in respect of sales.
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