Question

The Thomlin Company forecasts that total overhead for the current year will be $11,241,000 with 172,000 total machine hours. Year to date, the actual overhead is $7,730,000 and the actual machine hours are 85,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a. $45 per machine hour Ob. $132 per machine hour C. $65 per machine hour Od. $91 per machine hour

Answer 1

	Thomlin company
	predetermined overhead rate
	total overhead estimated/estimated machine hours
	11,241,000/172,000
	65
	option c)	$65 per machine hour
		Zoe
	cost of goods manufactured
	cost of direct materials used in production				16,025
	Direct labor				28,420
	Factory overhead				35,195
	total manufacturing costs				79,640
	beginning wip				16,720
	less ending WIP				-19,780
	Cost of goods manufactured				76,580	answer
	cost of goods sold
	Beginning finished goods inventory				22,393
	cost of goods manufactured				76,580
	less ending finished goods inventory				-22,244
	cost of goods sold				76,729	answer