Homework Chp 3 and 4 Solutions[1]

# Homework Chp 3 and 4 Solutions[1] - Homework#2...

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Chapters 3 and 4 Answer Key Exercise 3-6   1. Entry (a) is the amount of actual manufacturing overhead cost  incurred during the year. Debits to Manufacturing Overhead  represent actual overhead costs incurred and credits represent  overhead applied to products. 2. The activity rates would be computed as follows: Activity Cost Pool (a) Estimated  Overhead  Cost (b) Expected Activity (a) ÷ (b) Activity Rate Labor related. ......... \$156,000 26,000 DLHs \$6 per DLH Purchase orders. ... \$11,000 220 orders \$50 per order Parts management \$80,000 100 part types \$800 per part type Board etching. ........ \$90,000 2,000 boards \$45 per board General factory. ..... \$180,000 20,000 MHs \$9 per MH 3. Computation of the manufacturing overhead cost applied to  production: Activity Cost Pool (a) Activity Rate (b) Actual Activity (a) × (b) Applied Overhead Labor related. ......... \$6 per DLH 25,000 DLHs \$150,000 Purchase orders. .... \$50 per order 200 orders 10,000 Parts management. \$800 per part type 110 part types 88,000 Board etching. ........ \$45 per board 1,800 boards 81,000 General factory. ...... \$9 per MH 22,000 MHs

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Homework Chp 3 and 4 Solutions[1] - Homework#2...

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