Problem4-30 - 4.30 Proration of overhead. 1. Budgeted...

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4.30 Proration of overhead . overhead rate 1. Budgeted manufacturing = Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost $100,000 50% of direct manufacturing labor cost $200,000 = = 2. Overhead allocated = 50% × Actual direct manufacturing labor cost = 50% × $220,000 =$110,000 Overallocated plant overhead = Actual plant overhead costs – Allocated plant overhead costs = $106,000 – $110,000 = –$4,000 Overallocated plant overhead = $4,000 3a. All overallocated plant overhead is written off to cost of goods sold. Both work in process (WIP) and finished goods inventory remain unchanged. Account Dec. 31, 2009 Balance (Before Proration) (1) Proration of $4,000 Overallocated Manuf. Overhead (2) Dec. 31, 2009 Balance (After Proration) (3) = (1) (2) WIP $ 50,000 $ 0 $ 50,000 Finished Goods 240,000 0 240,000 Cost of Goods Sold 560,000 4,000 556,000 Total $850,000 $4,000 $846,000 3b. Overallocated plant overhead prorated based on ending balances: Account Dec. 31, 2009
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Problem4-30 - 4.30 Proration of overhead. 1. Budgeted...

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