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Tombert Decorating uses normal costing in assigning overhead costs. Overhead is applied based on the number of decorator hours. For the upcoming year, overhead costs
Tombert Decorating uses normal costing in assigning overhead costs. Overhead is applied based on the number of decorator hours. For the upcoming year, overhead costs are estimated at $960,000 and decorator hour usage is estimated at 40,000. During the year, $984, 150 actual overhead costs were incurred and 40, 500 actual decorator hours were used. a. Compute the pre-determined overhead rate for the year. b. Prepare the entry to apply the overhead costs to production for the year. c. Determine whether the overhead was under or over-applied and by how much. Agassi Company manufactures units in three different manufacturing departments. Manufacturing overhead is applied on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2017 the following estimates were made for the year. At the end of January, the following actual cost and production data is available: a. Compute the predetermined overhead rate for each department. b. Compute the total overhead to be applied to production in each department during January. c. Compute the total manufacturing costs assigned to jobs in January in each department. d. Compute the under- or overapplied overhead for each department at January 31
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