Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cretin enterprises uses a predetermined overhead r

Cretin Enterprises uses a predetermined overhead rate of $21.30 per direct labor-hour. This predetermined rate...

50.1K

Verified Solution

Question

Accounting

Cretin Enterprises uses a predetermined overhead rate of $21.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $170,613 of total manufacturing overhead for an estimated activity level of 8,010 direct labor-hours.

The company incurred actual total manufacturing overhead costs of $168,500 and 8,250 total direct labor-hours during the period.

Required:

1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.

2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Use the given information about 8 to find the exact values of the following 3...

Basic Math
Q

For this problem, carry at least four digits after the decimal in your calculations. Answers may...

Statistics
Q

5. Consider a particle in a two-dimensional, rigid, square box with side a. (a) Find the...

Physics
Q

A very long, straight solenoid with a cross-sectional area of 5.85 cm^2 is wound with 32...

Physics
Q

There were 13 that landed on their bases. 4. Using your same data again from your...

Basic Math
Q

Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions...

Accounting
Q

Patsy's's Pizza sells one 14-inch cheese pizza or two 10-inch cheese pizzas for $11.99. Determine...

Basic Math
Q

Assume that X is a Poisson random variable with 6 Calculate the following probabilities Do...

Statistics
Q

For tax year 2021, a taxpayer, generally speaking, must file a tax return if his...

Accounting
Q

Sumicon Widgets LLC has a 7 year maintenance contract with Turnkey Inc. that costs $1,000...

Accounting
Q

Kircher Clothing, Inc. manufactures two styles of jackets: standard, which sell for $45, and waterproof,...

Accounting
Q

Jackin and Johad their first baby and they wish to that he will be available...

Finance