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Predetermined Overhead Rates Aspen Company estimates its manufacturing overhead to be $ 6 2 5 , 0 0 0 and its direct labor costs to
Predetermined Overhead Rates
Aspen Company estimates its manufacturing overhead to be $ and its direct labor costs to be $ for year Aspen worked on three jobs for the year. Job which was sold during year had actual direct labor costs of $ Job which was completed, but not sold at the end of the year, had actual direct labor costs of $ Job which is still in workinprocess inventory, had actual direct labor costs of $ Actual manufacturing overhead for year was $ Manufacturing overhead is applied on the basis of direct labor costs.
Required
a How much overhead was applied to each job in year
b What was the over or underapplied manufacturing overhead for year
Prorate Over or Underapplied Overhead
Refer to the information in Exercise Prepare an entry to allocate overor underapplied overhead to:
a Work in Process.
b Finished Goods.
c Cost of Goods Sold.
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