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Please answer it quickly Ahlia Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account, $95,200. 2. Raw
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Ahlia Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account, $95,200. 2. Raw Materials of $40,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $10,000 was classified as indirect materials. 3. Factory labor costs incurred were $180,000 of which $160,000 pertained to factory wages payable and $20,000 pertained to employer payroll taxes payable. 4. Time tickets indicated that $140,000 was direct labor. 5. Incurred the following overhead costs during the year: Utilities $7,800, Depreciation on manufacturing machinery $10,000. 6. Manufacturing overhead was applied at the rate of 120% of direct material cost. Instructions Journalize the above transactions for Ahlia Corporation. Part B: (10 marks) Zain Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $292,500 and budgeted machine-hours were 19,500. Actual factory overhead was $287,920 and actual machine-hours were 19,050. Before disposition of under/overapplied overhead, the cost of goods sold was $560,000 and ending inventories were as follows: Instructions: 1. Determine the budgeted factory overhead rate per machine-hour. (2 marks) 2. Compute the over/underapplied overhead. (2 marks) 3. Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach. (3 marks) 4. Prepare the journal entry to dispose of the variance using the proration approach Step by Step Solution
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