Explan over and underapplied overhead based on machine hours
Not what you're looking for?
Question 1
Manufacturing overhead ---over/underapplied. Fortune inc produces automobile bumpers. Overhead is applied on the basis of machine hours required for cutting and fabricating. A predetermined overhead application rate of $12.70 per machine hour was established for 2006.
A) If 9000 machine hours were expected to be used during 2006,how much overhead was expected to be incurred.?
B) Actual overhead incurred during 2006 totaled $121,650 and 9100 machine hours were used during 2006 calculate the amount of over-or underapplied overhead for 2006.
C) Explain the accounting necessary for the over or underapplied overhead for the year.
Purchase this Solution
Solution Summary
The expert explains over and under applied overhead based on machine hours.
Solution Preview
ANSWERS
Requirement A
Expected overhead = 9,000*$12.70 = $114,300
Requirement B
9,100*$12.70 - $121,650 = $6,080 underapplied overhead
Requirement C
The over or underapplied overhead allows management to review its existing processes as ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.