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

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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...

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