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Predetermined overhead rate based on the estimated machine - hours Estimates made at the beginning of the year: Estimated machine - hours 4 5 ,
Predetermined overhead rate based on the estimated machinehours
Estimates made at the beginning of the year:
Estimated machinehours
Estimated variable manufacturing overhead $ per machinehour
Estimated total fixed manufacturing overhead $
Actual machinehours for the year
Actual overhead was $
A Applied Overhead was:
B Was overhead over or under applied?
C By how much was overhead under or over applied?
D Will the adjustment to cost of goods sold result in an increase or decrease in net income? Why?
E Will the adjustment to workinprocess and the finished goods inventory accounts result in an increase or decrease to the cost of the inventory? Why?
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