Managerial Acct Week 2

Managerial Acct Week 2 - 3-32 Predetermined Overhead Rate:...

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3-32 Predetermined Overhead Rate: Disposition of Underapplied or Overapplied overhead Predetermined overhead rate at the beginning of the year: machine hours 75,000 Manufacturing overhead cost sfr 900,000 Actual cost and operating data for the year: Machine hours 60,000 Manufacturing overhead cost sfr850,000 Inventories at year-end: Raw materials sfr30,000 Work in process (Inc OH applied of 36,000) sfr 100,000 Finished goods (inc. OH applied of 180,000) sfr500,000 Cost of goods sold (Inc OH applied of 504,000) sfr 1,400,000 1. Compute the companies predetermined overhead rate 900000 75,000 12 2. Compute the underapplied or overapplied overhead The company had overapplied the overhead by 15,000. Predetermined overhead 900,000-850000= 3. Assume that the company closes any underapplied or overapplied overhead directly to Cost of Go Manufactured overhead 15,000 Cost of Goods Sold 15,000 Unadjusted Cost of Goods sold 1400000 Subtract overapplied overhead 15,000 Adjusted Cost of Goods Sold 1,385,000 5. How much higher or lower will the net operating income be if the underapplied or overapplied ove Problem 3-34 Critical Thinking: Interpretation of Manufacturing Overhead Rates. Given: Predetermined overhead rate= 3402000/63000= 54 per direct hours.
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This note was uploaded on 03/22/2011 for the course ACCT 581 taught by Professor Dontknow during the Spring '11 term at University of Phoenix.

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Managerial Acct Week 2 - 3-32 Predetermined Overhead Rate:...

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