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Sky Corporation has a normal capacity of 75,000 machine hours. The expected operating level for the period just ended was 50,000 hours. At this expected
Sky Corporation has a normal capacity of 75,000 machine hours. The expected operating level for the period just ended was 50,000 hours. At this expected capacity, variable expenses were estimated to be $34.500 and Fixed Expenses of $25,000. Actual results show that 53,000 machine hours were used and that actual factory overhead totaled $56,500 during the period. Required: a. Compute the predetermined factory overhead rate based on normal capacity! (3 points) b. Compute the predetermined factory overhead rate based on expected actual capacity! (3 points) C. Compute the amount of factory overhead charged to production if the company used the normal capacity rate! (3 points) d. Compute the amount of factory overhead charged to production if the company used the expected actual capacity rate! (3 points) e. Compute the amount of over or under-applied factory overhead if the company used the normal capacity rate! (4 points) f. Compute the amount of over or under-applied factory overhead if the company used the expected actual capacity rate! (4 points)
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