Y Company reported the following actual costs data for the year Purchase of raw materials (all direct) $200,000 Direct labour (average hourly rate of $20) $320,000 Manufacturing overhead costs $100,000 The following changes in inventory accounts occurred during the year Increase in raw materials $20,000 Increase in work in progress $16,000 Increase in finished goods $32,000 Y Company used a predetermined overhead rate based on direct labour hours Estimated annual manufacturing overhead cost and direct labour hours were $150,000 and 20,000, respectively Required a (2 marks) What was the pre determined manufacturing overhead rate b (5 marks) Calculate the cost of goods manufactured c (3 marks) What was the cost of goods sold before adjusting for any under or overapplied overhead d (2 marks) By how much was manufacturing overhead cost under or overapplied e (2 marks)Prepare a summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold f (2 marks) Explain possible causes for the over under applied overhead

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Y Company reported the following actual costs data for the year  Purchase of raw materials (all direct) $200,000 Direct labour (average hourly rate of $20) $320,000 Manufacturing overhead costs $100,000 The following changes in inventory accounts occurred during the year Increase in raw materials $20,000 Increase in work in progress $16,000 Increase in finished goods $32,000 Y Company used a predetermined overhead rate based on direct labour hours  Estimated annual manufacturing overhead cost and direct labour hours were $150,000 and 20,000, respectively  Required  a  (2 marks) What was the pre determined manufacturing overhead rate  b  (5 marks) Calculate the cost of goods manufactured  c  (3 marks) What was the cost of goods sold before adjusting for any under or overapplied overhead  d  (2 marks) By how much was manufacturing overhead cost under or overapplied  e  (2 marks)Prepare a summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold  f  (2 marks) Explain possible causes for the over under applied overhead

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Y Company reported the following actual costs data for the year: Purchase of raw materials (all direct) $200,000 Direct labour (average hourly rate of $20)

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Y Company reported the following actual costs data for the year:

Purchase of raw materials (all direct)		$200,000
Direct labour (average hourly rate of $20)		$320,000
Manufacturing overhead costs	$100,000

The following changes in inventory accounts occurred during the year

Increase in raw materials	$20,000
Increase in work in progress	$16,000
Increase in finished goods	$32,000

Y Company used a predetermined overhead rate based on direct labour hours. Estimated annual manufacturing overhead cost and direct labour hours were $150,000 and 20,000, respectively.

Required:
a. (2 marks) What was the pre-determined manufacturing overhead rate?
b. (5 marks) Calculate the cost of goods manufactured.
c. (3 marks) What was the cost of goods sold before adjusting for any under or overapplied overhead?
d. (2 marks) By how much was manufacturing overhead cost under or overapplied?
e. (2 marks)Prepare a summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold.
f. (2 marks) Explain possible causes for the over/under applied overhead