Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the...
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Accounting
Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would work 87,400 machine-hours and incur $279,680 in manufacturing overhead costs for the year.
Required:
1.
Compute the company's predetermined overhead rate. (Round your answer to 2 decimal places.)
2.
Assume that during the year the company actually worked only 81,200 machine-hours and incurred $272,000 of manufacturing overhead costs. Compute the amount of underapplied or overapplied overhead for the year. (Round your intermediate calculation to 2 decimal places.)
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