Question

5 pts Question 5 The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is e $500,000 over applied O $1,000,000 over applied $500,000 under applied $1,000,000 under applied -Guard

Answer 1

Q5) Answer : $500000 over-applied

Predetermined overhead rate (based on MH)= T Overhead / T exp. Machine hours

Predetermined overhead rate (based on MH)= 15000000 / 300000 = $50/MH

Applied overhead = Actual machine hours * Predetermined overhead rate

Applied overhead = 330000 * 50 = 16500000

Actual overhead = 16000000

Over-applied = Applied - actual = 16.5m - 16m = 0.5m

1) Answer : Cost of Goods sold = $152000
	Amount $
Cost of Goods sold=
Opening WIP	28000
Cost of manufacturing:
Cost of materials used	45000
Direct Labor	48000
Factory Overhead	39000
Total cost of manufacturing	132000
Total cost of WIP	160000
Less: Closing WIP	18000
Cost of goods manufactured	142000
Add: Begin Finished Goods	28000
Total Goods for Sale	170000
Less: End Finished Goods	18000
Cost of Goods sold	152000