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Lama Corporation applies overhead based upon machine hours. Bludgeted factory overhead was AFD270,000 and budgeted machine hours were 18.000 Actual factory overhead was AFD280,000 and

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Lama Corporation applies overhead based upon machine hours. Bludgeted factory overhead was AFD270,000 and budgeted machine hours were 18.000 Actual factory overhead was AFD280,000 and actual machine hours were 19,000. Before disposition of over or under applied overhead, the cost of goods sold and ending interes were as follow Costs of Goods Sold WIP Finished Goods Total AED Song TO Po 000 Required: a) Compute the amount of overhead applied to production b) Prepare journal entry to llustrate disposing of the over/under-applied overhead using the proration approach

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