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Harwood Company's job - order costing system applies overhead cost to jobs based on its machine - hours. The predetermined overhead rate of $ 2
Harwood Company's joborder costing system applies overhead cost to jobs based on its machinehours. The predetermined overhead rate of $ per machinehour was based on a cost formula that estimates $ of total manufacturing overhead for an estimated activity level of machinehours. Required: Assume during the year the company works only machinehours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your Taccounts. A Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead Taccount. B Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.
Harwood Company's joborder costing system applies overhead cost to jobs based on its machinehours. The predetermined overhead rate of $ per machinehour was based on a cost formula that estimates $ of total manufacturing overhead for an estimated activity level of machinehours.
Required:
Assume during the year the company works only machinehours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your Taccounts.
A Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead Taccount.
B Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.
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