122. Sandler Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Required: Compute the company's predetermined overhead rate. Answer Estimated total manufacturing overhead = $838,770 + ($3.49 per × 73,000 machine-hours) = $1,093,540 Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $1,093,540 ÷ 73,000 machine-hours = $14.98 per machine-hour The following cost data relate to the manufacturing activities of Newberry 130. Company during the just completed year: The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The predetermined overhead rate for the year was $15 per machine-hour. A total of 23,000 machine-hours were recorded for the year. Required: a. Compute the amount of underapplied or overapplied manufacturing overhead cost for the year. b. Prepare a Schedule of Cost of Goods Manufactured for the year.
122. Sandler Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Required: Compute the company's predetermined overhead rate. Answer Estimated total manufacturing overhead = $838,770 + ($3.49 per × 73,000 machine-hours) = $1,093,540 Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $1,093,540 ÷ 73,000 machine-hours = $14.98 per machine-hour 130. The following cost data relate to the manufacturing activities of Newberry Company during the just completed year: The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The predetermined overhead rate for the year was $15 per machine-hour. A total of 23,000 machine-hours were recorded for the year. Required: a. Compute the amount of underapplied or overapplied manufacturing overhead cost for the year. b. Prepare a Schedule of Cost of Goods Manufactured for the year.
Chap-02-Final-review.docx