8_takehome_chapter 4_fall 2010_soln

# 8_takehome_chapter 4_fall 2010_soln - Acc 200 Take-home...

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Acc 200 Take-home Quiz Chapter 4 (Managerial Accounting) Solution PROBLEM I: (50 pts) ABC Inc. is a manufacturer that uses job-order costing. The company allocates overhead based on machine hours . At the beginning of 2013, the company estimated total overhead for the year to be \$900,000. They also estimated 20,000 machine hours will be worked. During 2013, a particular client required 600 machine hours. During all of 2013, actual total machine hours allocated to all clients (including the one noted above) was 18,000. At the end of 2013, actual overhead costs ended up being \$800,000. A. What is the predetermined overhead rate this company should use? Answer: \$_ 45 per machine hour Predetermined OH rate = Estimated Total OH Costs Estimated Cost Driver Predetermined OH rate = \$900,000 20,000 Predetermined OH rate = \$45 per machine hour B. How much overhead should be applied to the particular client that required 600 machine hours? Answer: \$_

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## This note was uploaded on 12/13/2010 for the course ACC 200 taught by Professor Buckless during the Fall '08 term at N.C. State.

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8_takehome_chapter 4_fall 2010_soln - Acc 200 Take-home...

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