Question
Developing and Using a Predetermined Overhead Rate Assume that the following predictions were made for last year for one of the plants of Milliken &
Developing and Using a Predetermined Overhead Rate Assume that the following predictions were made for last year for one of the plants of Milliken & Company:
Total manufacturing overhead for the year | $ 15,000,000 |
Total machine hours for the year | 1,200,000 |
Actual results for February were as follows:
Manufacturing overhead | $ 1,238,500 |
Machine hours | 98,500 |
(a) Determine the predetermined overhead rate per machine hour. (Enter answer using two decimal places.) $Answer
(b) Using the predetermined overhead rate per machine hour, determine the manufacturing overhead applied to Work-in-Process during February. $Answer
(c) As of February 1, actual overhead was underapplied by $35,000. Determine the cumulative amount of any overapplied or underapplied overhead at the end of February. $Answer
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