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Each case is independent Solve for missing 17-25. Developing and using a Predetermined Overhead Rate: High-Low Cost Estimation Pran, Martoon Components Company has used an
Each case is independent Solve for missing 17-25. Developing and using a Predetermined Overhead Rate: High-Low Cost Estimation Pran, Martoon Components Company has used an actual plantwide overhead rate and be production manager, Sue Wali confronted the controller with a common problem. The mus ang manager expressed a concom thar Mattoon's prices seem to vary widely through for you According to Adams. "ht seems irrational to charge higher prices when business is bad worn son cost plus a markup of 30 percent. Recently the marketing manager, Holly Adams maths because we are raising prices while our competitors are lowering them." Walsh also be charge less than our competitors, it is a waste of time to even call on customers during low that it was folly to be so pushed that we have to pay overtime in some months and the last ployees off in others. She commented, "While there are natural variations in customer det Evaluate the arguments presented by Adams and Walsh. What suggestions do you have box Assume that the Martoon Components Company had the following total manufacturing prices when business is good. While we get a lot of business during high-volume months beca o Eski REQUIRED 784 and the WIP tabic. E acounting system seems to amplify this variation." REQUIRED the pricing procedures? head costs and direct labor hours in 2016 and 2017: 2016 2017 $248.000 28,000 $210,000 Total manufacturing overhead 20,000 Direct labor hours. Use the high-low method (see Chapter 14) to develop a cost estimating equation for moed manufacturing overhead. Develop a predetermined rate for 2018, assuming 25,000 direct labor hours are budgeted for 2018 Assume that the actual level of activity in 2018 was 30,000 direct labor hours and that the totul 2018 manufacturing overhead was $250,000. Determine the underapplied or overapplied manufacturing overhead at the end of 2018. Describe two ways of handling any underapplied or overapplied manufacturing overhead the end of the year. os entence
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