Question
Which of the following statements is correct? A. If MOH is overallocated to a job that has been sold, and the company calculates sales price
Which of the following statements is correct?
A.
If MOH is overallocated to a job that has been sold, and the company calculates sales price by marking up jobcosts, the job will likely be underpriced.
B.
Number of units is typically an appropriate allocation base for MOH because the companys products consume equal overhead resources.
C.
To calculate the decrease to WIP for allocated MOH costs, the POHR is multiplied by the actual amount of the allocation based used by the cost object.
D.
The formula to arrive at the POHR is total actual manufacturing overhead divided by total estimated allocation base.
E.
If the over/underallocated MOH is fairly large and the majority of the units have not been sold, the balance in MOH should be prorated between WIP, FG, and COGS.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started