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Moody Corporation uses a job-order costing system with a plantwide overhead rate based on machine- hours. At the beginning of the year, the company made
Moody Corporation uses a job-order costing system with a plantwide overhead rate based on machine- hours. At the beginning of the year, the company made the following estimates Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 100,000 $ 650,000 $3.00 Required 1. Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) edetermined overhead per MH 2. During the year, Job 400 was started and completed. The following information was available with respect to this job Direct materials requisitioned Direct labor cost Machine-hours used S 450 S 210 40 Compute the total manufacturing cost assigned to Job 400. (Round your intermediate calculations to 2 decimal places.) Total manufacturing c 3-a. During the year, the company worked a total of 146,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,350,000. What is the amount of underapplied or overapplied overhead for the year? (Round your intermediate calculations to 2 decimal places.) Manufacturing overhead by 3-b. If this amount were closed out entirely to Cost of Goods Sold, would net operating income increase or decrease? O Increase Decrease
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