Carter Copper uses a pre-determined overhead rate based on machine hours to allo

Question

Carter Copper uses a pre-determined overhead rate based on machine hours to allocate overhead costs to production (WIP) Estimated annual manufacturing overhead costs for 2016 were $625,000 and the company anticipates that it will use 72,000 machine hours during the year. Carter Copper actually incurred $641,250 of manufacturing overhead and actual machine hours totaled 70,100. Answers Calculate the pre-determined overhead rate to three significant digits. During the year how much overhead was actually assigned to Work in Progress (exclude any end of year adjustments) If the balance in the manufacturing overhead account (before adjustments) is a debit, enter the amount of the balance. Otherwise enter 0. If the balance in the manufacturing overhead account (before adjustments) is a credit, enter the amount of the balance. Otherwise enter 0 Before any adjustments are made, would the Cost of Goods Manufactured for the year be over valued or under valued? Enter 1 for over valued and-1 for under valued

Explanation / Answer

answers predetermined overhead rate (625,000/72000)= 8.681 Actually assigned to WIP (8.681*70,100) 608507 debit balance (641,250-608,507) 32743 Credit balance 0 cost of goods sold -1

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