Demo for Chapter 2

# Demo for Chapter 2 - Chapter2 DemoProblem1

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Chapter 2 Demo Problem 1 Logan Products computes its predetermined overhead rate  annually on the basis of direct labor hours. At the beginning of  the year it estimated that its total manufacturing overhead would  be \$586,000 and the total direct labor would be 40,000 hours.  Its actual total manufacturing overhead for the year was  \$713,400 and its actual total direct labor was 41,000 hours.  Required:  Compute the company's predetermined overhead rate for the  year.  The predetermined overhead rate is computed as follows: Estimated total manufacturing  overhead \$586,000 ÷ Estimated total direct labor  hours (DLHs)       40,000     DLHs = Predetermined overhead rate       \$14.65     per  DLH 1

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Chapter 2 Demo Problem 2 Kirkaid Company recorded the following transactions for the just  completed month.  a. \$86,000 in raw materials were purchased on account.  b. \$84,000 in raw materials were requisitioned for use in
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## Demo for Chapter 2 - Chapter2 DemoProblem1

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