Step 1:
For predetermined overhead rate would be calculate like
Estimated Manufacturing Overhead ($239,500) / Estimated Machine Hours (4,500) = 53.22
Step 2:
For applied manufacturing overhead for the year is
Actual Manufacturing Overhead ($241,900) / Actual Machine Hours (5,500) = 43.98
Step 3:
Overhead for the year is Over Applied because
Estimated Overhead rate (53.22) - Actual Overhead Rate (43.98) = 9.24
Step 4:
Its decrease COGS
Final net income will be increase.
Cost of goods sold is deducted from revenue to determine a company's gross profit. Gross profit, in turn, is a measure of how efficient a company is at managing its operations. Thus, if the cost of goods sold is too high, profits suffer and investors naturally worry about how well the company is doing overall.
6. Mattie Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following...
Mattie Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its year 2019 operations: Estimated manufacturing overhead $239,500 Estimated machine-hours 4,500 Actual manufacturing overhead $241,900 Actual machine hours 5,500 Use the data to answer the following questions (a - d). a. The predetermined overhead rate would be: b. The applied manufacturing overhead for the year is: c. Was the overhead for the year over applied or under applied? By how much? d. When...
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $ 157,700 Estimated machine-hours 4,630 Actual manufacturing overhead $ 157,300 Actual machine-hours 4,840 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round...
Acheson Corporation, which applies manufacturing overhead on the basis of machine hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead Estimated machine-hours Actual manufacturing overhead Actual machine-hours $157,400 4,570 $156,700 4,720 The estimates of the manufacturing overhead and of machine hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round...
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $ 157,350 Estimated machine-hours 4,560 Actual manufacturing overhead $ 156,600 Actual machine-hours 4,700 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round...
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations Estimated manufacturing overhead Estimated machine-hours Actual manufacturing overhead Actual machine-hours $158,050 4,700 $158,000 4,980 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round your intermediate...
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead Estimated machine-hours Actual manufacturing overhead Actual machine-hours $157,800 4,650 $157,500 4,880 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round your intermediate...
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead Estimated machine-hours Actual manufacturing overhead Actual machine-hours $157,300 4,550 $156,500 4,680 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round your intermediate...
Acheson Corporation, which applies manufacturing overhead on the basis of machine hours, has provided the following data for its most recent year of operations Estimated manufacturing overhead $ 157,050 Estimated machine-hours 4.500 Actual manufacturing overhead $ 156,000 Actual machine-hours 4,580 The estimates of the manufacturing overhead and of machine hours were made at the beginning of the you for the purpose of computing the company's predetermined overhead rate for the year. The overhead for the year was Multiple Choice $2.782...
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead Estimated machine-hours Actual manufacturing overhead Actual machine-hours $ 158,050 4,700 $ 158,000 4,980 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year Multiple Choice $31.73 $33,63 $33.62 $45.52
Cahin Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $21,060. Actual manufacturing overhead for the year amounted to $13,000 and actual machine-hours were 1,380. The company's predetermined overhead rate for the year was $16.20 per machine-hour. The applied manufacturing overhead for the year was closest to: a. $23,732 b. $21,060 c. $22,356 d. $13,800