AutoSave Of H b A ssessment-Two_ACCT603_51-2020-1 - Protected View - Saved to this PC - Search File Home Insert Design Layout References Mailings Review View Help Share Comments d. With reference to your answers to (c), if the underapplied/overapplied overhead amount were closed out entirely to Cost of Goods Sold, would net operating income increase or decrease? Explain your responses. (4 marks) e. In a company meeting, an employee asked why the company is using machine-hours as an allocation base to determine the overhead rate. Describe TWO potential reasons behind the company's use of machine-hours as an allocation base. (4 marks) Question 1 20 marks Christchurch Packaging Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 154.000 $659,000 $4.50 Required (show your calculations): a. Compute the predetermined overhead rate. (4 marks) b. During the year, Job 546 was started and completed. The following information was available with respect to this job: | Direct materials requisitioned Direct labour cost Machine-hours used $370 $250 34 Compute the total manufacturing cost assigned to Job 546. (4 marks) C. During the year, the company worked a total of 145,700 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,283,246. What is the amount of underapplied or overapplied overhead for the year? Page 2 of 3 37 of 683 words Focus - + 80% - ra 1 Type here to search o Be - @ O ^ fx O 8:11 PM 5/10/2020