Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Topic: Underapplied and Overapplied Overhead 80. Carter 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 $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $24.70 per machine-hour. The predetermined overhead rate was based on how many estimated machine-hours? Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total machine-hours Estimated total machine-hours = Estimated total manufacturing overhead ÷ Predetermined overhead rate = $135,850 ÷ $24.70 per machine-hour = 5,500 machine-hours AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-01 Compute a predetermined overhead rate. Topic: Job-Order Costing
Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Topic: Underapplied and Overapplied Overhead 80. Carter 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 $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $24.70 per machine-hour. The predetermined overhead rate was based on how many estimated machine-hours? Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total machine-hours Estimated total machine-hours = Estimated total manufacturing overhead ÷ Predetermined overhead rate = $135,850 ÷ $24.70 per machine-hour = 5,500 machine-hours AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-01 Compute a predetermined overhead rate. Topic: Job-Order Costing
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