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Hubley Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end
Hubley Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company has provided the following data for August: Direct materials Direct labor cost Manufacturing overhead cost incurred Manufacturing overhead cost applied $ 77,000 S 115,250 $ 75,275 $ 80,675 Inventories: Work in process Finished goods Beginning $20,000 $63,150 Ending $22,725 $42,000 The cost of goods sold that appears on the income statement for August and that has been adjusted for any underapplied or overapplied overhead is closest to: $270,200 $291,350 O $296,750 O $285,950 Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead Estimated machine-hours Actual manufacturing overhead Actual machine-hours $135,450 2,100 $130,500 2,040 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The predetermined overhead rate is closest to: $64.31 $63.78 $63.97 $64.50
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