Question
C D E F G H ' , 2 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost 6 Estimated total amount of
C D E F G H ' , 2 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost 6 Estimated total amount of the allocation base 7 Actual manufacturing overhead cost 8 Actual total amount of the allocation base Machine-hours $300,000 75,000 Machine-hours $290,000 68,000 Machine-hours 9 10 11 12 13 Estimated manufacturing overhead cost 14 Estimated total amount of the allocation base 15 Predetermined overhead rate 16 (= $300,000/75,000 machine hours -$4) 17 18 Actual manufacturing overhead cost 19 Manufacturing overhead applied to WIP during the year: Predetermined overhead rate $300,000 75,000 Machine-hours $4 per machine hour $290,000 20 21 22 Actual total amount of the allocation base Manufacturing overhead applied 23 Underapplied (Overapplied) manufacturing overhead $4 (As calculated above] 68,000 $272,000 [68,000 machine hours x $4] $18,000 [$290,000 - $272,000; It is underapplied as the applied OH is less than actual OH cost]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started