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Booker Co. had estimated annual MOH of $100,000 and estimated annual machine hours of 10,000 MH. For this company MHs are the cost driver. For
- Booker Co. had estimated annual MOH of $100,000 and estimated annual machine hours of 10,000 MH. For this company MHs are the cost driver. For the year the actual MOH for the company was $110,000 and the actual machine hours used were 9,000 MH.
- Calculate the POHR
- Calculate the amount of MOH applied.
- Was the MOH underapplied or overapplied and by how much? If not adjusted or corrected would Operating Income be understated or overstated?
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Cornerstones of Managerial Accounting
Authors: Mowen, Hansen, Heitger
3rd Edition
324660138, 978-0324660135
