HWCH5 #2 nts Developing and Using a Predetermined Overhead Rate Assume that the following predictions were made for 2009 for one of the plants of Milliken & Company Total manufacturing overhead for the year $44,000,000 Total machine hours for the year 2,000,000 Actual results for February 2009 were as follows Manufacturing overhead $5,510,000 10,000 Machine hours (a) Determine the 2009 predetermined overhead rate per machine hour s 22 (b) Using the predetermined overhead rate per machine hour, determine the manufacturing overhead applied to Work-in-Process during February (c) As of February 1, actual overhead was underapplied by $500,000. Determine the cumulative amount of any overapplied or underapplied overhead at the end of February. s o oe Check You have correctly selected 1 SCost of Production Report: No Beginning Inventories Oregon Paper Company produces newsprint paper through a special recycing process using scrap paper products. Production and cost data for October 2009, the first month of operations for the company's new Portland plant. follow Finish a Units of produd started in pracess dring October 90,000 srs Units completed and tranfeed to fired goods 75.000 wrn Machire hours opemaed Direct materials costs incurred Direc labor coss ircurred 10,000 522 000 181 750 Raw materials are added at the beginning of the process for each unit of product produced, and labor and manufacturing overhead are added evenly throughout the manufacturing process. Manufacturing overhead is applied to Work-in-Process at the rate of $24 per machine hour. Units in process at the end of the period were 65 percent converted Prepare a cost of production report for Oregon Paper Company for October . Round answers to the nearest whole number unless otherwise noted. Do not use negative signs with your answers. Oregon Paper Company Cost of Production Report For the Month Ending October 31, 2009 Units sarled 75.000 Compietestd 1300 15,000 75000 | nooo | 8734 15.000 84750