Question
Marsupial Corp. set normal capacity at 90,000 machine hours. The expected operating level for the period just ended was 60,000 hours. At this expected actual
Marsupial Corp. set normal capacity at 90,000 machine hours. The expected operating level for the period just ended was 60,000 hours. At this expected actual capacity, variable expenses were estimated to be P585,000 and fixed expenses of P360,000. Actual results show that 70,500 machine hours were used and that actual factory overhead totaled P960,000 for the period.
Additional information:
Materials Labor Factory Overhead Total Work in process 84,325 67,500 80,000 231,825 Finished goods 119,050 95,250 120,000 334,300 Cost of goods sold 872,500 698,500 800,000 2,371,000
Compute the predetermined factory overhead rate based on normal capacity. *
Compute the predetermined factory overhead rate based on expected actual capacity. *
Compute the amount of factory overhead charged to production if the company used the normal rate.
Compute the amount of factory overhead charged to production if the company used the expected actual capacity rate.
Compute the amount of un-applied factory overhead if the company used the normal capacity rate. (Indicate the direction. Sample: 12,345over or 12,345under)
Compute the amount of un-applied factory overhead if the company used the expected actual capacity rate. (Indicate the direction. Sample: 12,345over or 12,345under)
Assuming the expected actual capacity is the basis of the predetermined rate and the amount of the un-applied overhead is material, the journal entry would include a debit to:
Assuming the expected actual capacity is the basis of the predetermined rate and the amount of the un-applied overhead is material, the entry for the cost of goods sold account would be
Assuming the expected actual capacity is the basis of the predetermined rate and the amount of the un-applied overhead is material, the entry for the work in process account would be:
Assuming the normal capacity is the basis of the predetermined rate and the amount of the un-applied overhead is immaterial, the journal entry would include a debit to:
Assuming the normal capacity is the basis of the predetermined rate and the amount of the un-applied overhead is immaterial, the entry for the cost of goods sold account would be:
Assuming the normal capacity is the basis of the predetermined rate and the amount of the un-applied overhead is immaterial, the entry for the work in process account would be
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