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Exercise (2) . At the beginning of the year 2016, The company estimated manufacturing overhead expenses for the coming year would be AED 500,000 and
Exercise (2) . At the beginning of the year 2016, The company estimated manufacturing overhead expenses for the coming year would be AED 500,000 and it estimated that 50,000 direct labor hours would be required for the coming year. At the end of May, actual manufacturing overhead for the month was AED 45,000 and its actual direct labor hours were 8,000 hours. Before disposition of over- or under-applied overhead, the following balances were available for the month of May: WIP AED 80,000 Finished Goods AED 120,000 COGS AED 200,000 Total AED 400,000 Required: 1- Compute the POHR? 1- Computer the over/underapplied amount for year? 2- Prepare the journal entry to dispose of the over/under-applied overhead using the proration approach
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