XYZ Manufacturing uses a predetermined overhead rate, based on labor hours, to apply its MOH....
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XYZ Manufacturing uses a predetermined overhead rate, based on labor hours, to apply its MOH. The following information was taken from the cost records of the company. Total Estimated Manufacturing Overhead ---------------------------------------- $3,240,000 Actual Direct labor hours-----------------------------------------------------------------------80,000 Actual Manufacturing Overhead incurred ---------------------------------------------$3,200,000 Estimated Direct labor hours--------------------------------------------------------------- 90,000 Assume that the following account balances exist: WIP $500,000 Finished Goods 800,000 Cost of Goods Sold 700,000 To write-off or dispose of the over/under allocation of MOH by using the account balance method would include.
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