Comm 294 managerial accounting practice lab chapter 1-3 job order costing

Comm 294 managerial accounting practice lab chapter 1-3 job order costing

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1. award: 10 out of 10.00 points Exercise 3-5 Apply Overhead [LO5] Carera Corporation uses a predetermined overhead rate of $23.10 per direct labour-hour. This predetermined rate was based on 12,000 estimated direct labour-hours and $277,200 of estimated total manufacturing overhead. The company incurred actual total manufacturing overhead costs of $266,000 and 12,600 total direct labour-hours during the period. Required: Determine the amount of manufacturing overhead that would have been applied to units of product during the period as well as the amount of over- or underapplied overhead for the period. (Input all amounts as positive values. Omit the "$" sign in your response.) Manufacturing overhead $ 291,060 Overapplied overhead $ 25,060 2. award: 10 out of 10.00 points Exercise 3-8 Underapplied and Overapplied Overhead [LO7] Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labour-hour. This predetermined rate was based on 16,000 estimated direct labour-hours and $171,200 of estimated total manufacturing overhead. The company incurred actual total manufacturing overhead costs of $345,000 and 16,500 total direct labour-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. (Omit the "$" sign in your response.) Overapplied manufacturing overhead $ 8,100
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2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company’s gross margin for the period? (Omit the "$" sign in your response.) Because manufacturing overhead is overapplied , the cost of goods sold would decrease by $ 8,100 and the gross margin would increase by $ 8,100 .
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  • Spring '09
  • AZIZ
  • Supply chain management terms

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