al places.) itive value.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For
the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $413,000 and total machine hours of 47,200.
During the year actual manufacturing overhead incurred was $405,040 and 48,800 machine hours were used.
(a) Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)
Predetermined Overhead Rate
per hour
(b) Calculate how much manufacturing overhead will be applied to production.
Manufacturing Overhead Applied
(c) Is overhead over- or underapplied? By how much? (Input the amount as positive value.)
Overhead
(d) What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?
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