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HOW TO SOLVE A,B,C,D, showing work Manufacturing overhead-over/underapplied Creative Lighting Inc: makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor
HOW TO SOLVE A,B,C,D, showing work
Manufacturing overhead-over/underapplied Creative Lighting Inc: makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company's fiscal year. $110.880 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of $12 per direct labor hour. Required: a. Calculate the number of hours of direct labor used during June. b. Actual manufacturing overhead costs incurred during June totaled $106,680. Calculate the amount of over- or underapplied overhead for June. c. Identify two possible explanations for the over-or underapplied overhead. d. Explain the accounting appropriate for the over-or underapplied overhead at the end of JuneStep by Step Solution
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