Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products based on machine-hours. The predetermined overhead rate was based on a cost formula that estimates $735,000 of total manufacturing overhead for an estimated activity level of 49,000 machine-hours. During the year, a large quantity of furniture on the market caused Luzadis to cut production and build inventories. The company provided the following data for the year: Machine-hours Manufacturing overhead cost Inventories at year-end: Complete this question by entering your answers in the tabs below. Raw materials Work in process (includes overhead applied of $60,000) Finished goods (includes overhead applied of $102,000) Cost of goods sold (includes overhead applied of $438,000) Required: 1. Compute the underapplied or overapplied overhead. 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal ent 3. Assume the company allocates underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and of Goods Sold. Prepare the appropriate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Required 1 Required 2 Required 3 40,000 $693,000 Required 4 $ 20,000 $ 185,000 $ 314,500 $ 1,350,500

Luzadis Company makes furniture using the latest automated technology. The company uses a job order costing system and appliemanufacturing overhead cost to products based on machine hours. The predetermined overhead rate was based on a cost formula that estimates $735,000 of total manufacturing overhead for an estimated activity level of 49,000 machine-hours: During the year, a large quantity of furniture on the market caused luzadis to cut production and build inventories. The company provided the following data for the year: Required: 1. Compute the underapplied or overapplied ovethead. 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate joumal en 3. Assume the company allocates underapplied or overapplied overhead proportionally to Work in Process, Finishied Goods, and of Goods Sold. Prepare the appropitate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied bverhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. Luzadis Company makes furniture using the latest automated technology. The company uses a job order costing system and appliemanufacturing overhead cost to products based on machine hours. The predetermined overhead rate was based on a cost formula that estimates $735,000 of total manufacturing overhead for an estimated activity level of 49,000 machine-hours: During the year, a large quantity of furniture on the market caused luzadis to cut production and build inventories. The company provided the following data for the year: Required: 1. Compute the underapplied or overapplied ovethead. 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate joumal en 3. Assume the company allocates underapplied or overapplied overhead proportionally to Work in Process, Finishied Goods, and of Goods Sold. Prepare the appropitate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied bverhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below