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Accounting
al places.) itive value.)

al places.) itive value.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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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