50.1K

Verified Solution

Link Copied!

Kody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour $ 156,000 658,000 4.30 Required: 1. Compute the predetermined overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predetermined overhead rate Predetermined overhead per MH 2. During the year Job 500 was started and completed. The following information was available with respect to this job: $ 380 Direct materials requisitioned Direct labor cost Machine-hours used 220 37 Compute the total manufacturing cost assigned to Job 500. (Round your intermediate calculations and final answer to 2 decimal places.) Total manufacturing cost 3-a. During the year the company worked a total of 145,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,242,400. What is the amount of underapplied or overapplied overhead for the year? (Round your intermediate calculations to 2 decimal places.) Manufacturing overhead cost 3-b. If this amount were closed out entirely to Cost of Goods Sold, would net operating income increase or decrease? O Increase Decrease

Answer & Explanation Solved by verified expert

See Answer