A company uses a job order cost system with manufacturing overhead applied to products on...
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Accounting
A company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor hours. For the year, estimated total manufacturing overhead cost was $ and total direct labor hours were estimated to be During the year, actual manufacturing overhead incurred was $ and direct labor hours were used.
Required:
Calculate the predetermined overhead rate.
Calculate how much manufacturing overhead will be applied to production.
Is overhead over or underapplied? By how much?
What account should be adjusted for over or underapplied overhead? Should the balance be increased or decreased?
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