Chapter 3

# Chapter 3 - Name Nguyen Thi Lan Thanh Class Tuesday Morning...

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Name: Nguyen Thi Lan Thanh Class: Tuesday Morning Student ID: 1236311 CHAPTER 3 11 / a) 10,000 units of product 20,000 machine hours (each product requires two hours of machine time) Predetermined variable OH rates: Units of product: \$80,000 : 10,000 = \$8 per unit Machine hours: \$80,000 : 20,000 = \$4 per machine hour Predetermined fixed OH rates: Units of product: \$325,000 : 10,000 = \$32.5 per unit Machine hours: \$325,000 : 20,000 = \$16.25 per machine hour b) Combined predetermined OH rate Units of product: (\$80,000 +\$325,000) : 10,000 = \$40.5 per unit Machine hours: (\$80,000 + \$325,000) : 20,000 = \$20.25 per machine hour c) 11,000 units of product 22,000 machine hours (each product requires two hours of machine time) Applied variable overhead cost: \$8 x 11,000 = \$88,000 = Actual variable overhead cost Applied variable overhead cost is the same Actual variable overhead cost Applied fixed overhead cost: \$32.5 x 11,000 = \$357,500 > Actual fixed overhead cost = \$325,000 Overapplied: \$357,500 - \$325,000 = \$32,500 12 / a) Amount of variable manufacturing overhead should be applied to production in April 2008: \$8 x 900 = \$7,200 b) Amount of fixed manufacturing overhead should be applied to production in April 2008: \$32.5 x 900 = \$29,250 c) Applied variable overhead cost = \$7,200 > Actual variable overhead cost = \$7,000 Overapplied: \$7,200 - \$7,000 = \$200

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Chapter 3 - Name Nguyen Thi Lan Thanh Class Tuesday Morning...

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