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REQUIRED. Round all answers to the nearest dollar. 1. (1 point) Compute the predetermined overhead rate Morrison will use toProblem Information: Morrison Company began the year with the following balances in its inventory accounts: Raw Materials $ 1

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Answer 1
Budgeted Manufacture overhead $    300,000
Divided by: Budgeted labor costs $    600,000
Predetermined overhead rate              0.50
Predetermined overhead rate in percentage 50%
Answer 2
Actual labor costs $    525,000
Predetermined overhead rate 50%
Manufacture overhead Applied to work in progress $    262,500
Answer 3
Raw material inventory at beginning $    125,000
add: Purchase of Raw material $    100,000
Raw Material Available for use $    225,000
Less: Raw material used (Direct used+ indirect used) $      11,180
Raw material inventory at Ending $    213,820
Direct material consumed (11180*80%) $        8,944
Direct labor $    525,000
Manufacturing overhead $    262,500
Total manufacture cost $    796,444
Add: work in process inventory at beginning $    320,000
Total cost to be accounted for $ 1,116,444
Less: Cost of goods manufactured (costs transfeerred to finishied goods) $    800,000
Work in process inventory at ending $    316,444
Finished goods Inventory at beginning $    400,000
Add: Cost of goods manufactured $    800,000
Cost of goods available for sale $ 1,200,000
Cost of goods Sold (Unadjusted) $ 1,000,000
Finished goods Inventory at ending $    200,000
Answer 4
Indirect materials (11180*20%) $        2,236
Indirect labor $      75,000
Misc. manufacturing expenses $      85,000
Depreciation of factory equipment $      75,000
Total Manufacture overhead incurred $    237,236
Less: Manufacture overhead Applied $    262,500
Under (Over) applied of overhead $    (25,264)
Over applied of overhead $      25,264
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