CALCULATOR PRINTER VERSION BACK NEXT Practice Exercise 4 (Part Level Submission)

Question

CALCULATOR PRINTER VERSION BACK NEXT Practice Exercise 4 (Part Level Submission) At the end of the year, but before an adjustment had been made to cdlose Manufacturing Overhead C ontrol, A-1 Frames had the following account balances: Raw Materials Inventory 126,874 Work in Process Inventory 147,054 Finished Goods Inventory 343,200 Cost of Goods Sold $1,959,740 At the beginning of the year, management had estimated that total manufacturing overhead would be $591,640 and had planned to apply overhead to jobs based on an estimated use 42,260 of machine hours. The actual number of machine hours used during the year was 49,400, and actual manufacturing overhead cost for the year was $715,700.

Explanation / Answer

Pre-determined overheads rate: Estimated Overheads / Estimated machine hours

                                                   = $ 591,640 / 42,260 MH = $14 per machine hour

Actual Machine hours used: 49400 machine hours

Overheads applied(49400 machine hours @$14 per MH): $ 691,600

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.