Moody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
|Machine-hours required to support estimated production||158,000|
|Total estimated manufacturing overhead cost||$||1,406,200|
Compute the predetermined overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
|Predetermined Overhead Rate: _________|
During the year, Job 400 was started and completed. The following information was available with respect to this job:
Total Manufacturing cost: _________
|Direct materials requisitioned||$||360|
|Direct labor cost||$||200|
Compute the total manufacturing cost assigned to Job 400. (Do not round intermediate calculations and round final answer to 2 decimal places.)
During the year the company worked a total of 145,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,294,500. What is the amount of underapplied or overapplied overhead for the year? (Use the overhead rate determined in requirement 1.)
|Manufacturing overhead cost underapplied by : ___________|
If this amount were closed out entirely to Cost of Goods Sold, would net operating income increase or decrease?
Get Answers For Free
Most questions answered within 1 hours.