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managerial accounting Chapter 4, Demonstration Problem 1: Manufacturing Cost Flows Sticky, Company included the following estimates in its budget for 20X9: Depreciation on manufacturing equipment
managerial accounting
Chapter 4, Demonstration Problem 1: Manufacturing Cost Flows Sticky, Company included the following estimates in its budget for 20X9: Depreciation on manufacturing equipment $10.400 Cost of manufacturing supplies $6,000 Direct labor cost S172,800 Rent on manufacturing facility $15.200 Administrative salaries cost $61 000 Direct materials cast $148.000 Manufacturing the cost $12.000 Maintenance cost for manufacturing facility $8.400 Advertising cost $74,000 Production supervision salaries cost $48,000 The company uses a normal cost system with a predetermined overhead rate based on machine hours. The production plan for 20x9 requires an estimated 30.000 machine hours. A Calculate the predetermined overhead rate for 20x9. B. Ir Sticky actually consumed 31.000 machine hours in 20x9, how much overhead cost did the company apply to WIP inventory? C. ir sticky actually incurred $125,000 of overhead cost in 20x9, did the company overapply overhead or underapply overhead, and by how much? D. What accounts are affected (magnitude and direction) when Sticky records the adjusting entry for this amount Step by Step Solution
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