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Compute the budgeted manufacturing overhead rate for 2017. 2. Compute the under- or overallocated manufacturing overhead of Wamth Radiator in 2017. Dispose of this amount
Compute the budgeted manufacturing overhead rate for 2017. | ||
2. | Compute the under- or overallocated manufacturing overhead of Wamth Radiator in2017. Dispose of this amount using the following: | |
a. | Write-off to Cost of Goods Sold | |
b. | Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold | |
c. | Proration based on the overhead allocated in 2017 (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold | |
3. | Which method do you prefer in requirement 2? Explain. |
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