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At the beginning of the year Grey Corporation estimated the following: Assembly Department $ 840,000 Overhead Direct labor hours 80,000 hrs. Machine hours 20,000 hrs. Overhead Direct labor hours Packaging Department $ 210,000 Grey uses departmental overhead rates. In the assembly department, overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows: Assembly Department $ 42,759 Packaging Department $ 20,400 4,000 hrs. Machine hours 1,000 hrs. Required: 4,000 hrs. 12,000 hrs. 300 hrs. 1,200 hrs. A.) Calculate the predetermined overhead rate for the assembly and packaging departments. B.) Calculate the overhead applied to production in each department for the month of April. C.) Calculate how much each department's overhead is overapplied/underapplied.

At the beginning of the year Grey Corporation estimated the following: Assembly Department $ 840,000 Overhead Direct labor hours 80,000 hrs. Machine hours 20,000 hrs. Overhead Direct labor hours Packaging Department $ 210,000 Grey uses departmental overhead rates. In the assembly department, overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows: Assembly Department $ 42,759 Packaging Department $ 20,400 4,000 hrs. Machine hours 1,000 hrs. Required: 4,000 hrs. 12,000 hrs. 300 hrs. 1,200 hrs. A.) Calculate the predetermined overhead rate for the assembly and packaging departments. B.) Calculate the overhead applied to production in each department for the month of April. C.) Calculate how much each department's overhead is overapplied/underapplied.

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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At the beginning of the year Grey Corporation estimated the following: Assembly Department $ 840,000 Overhead Direct labor hours 80,000 hrs. Machine hours 20,000 hrs. Overhead Direct labor hours Grey uses departmental overhead rates. In the assembly department, overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows: Packaging Department $ 20,400 Assembly Department $ 42,759 Packaging Department $ 210,000 4,000 hrs. Machine hours 1,000 hrs. Required: 4,000 hrs. 12,000 hrs. 300 hrs. 1,200 hrs. A.) Calculate the predetermined overhead rate for the assembly and packaging departments. B.) Calculate the overhead applied to production in each department for the month of April. C.) Calculate how much each department's overhead is overapplied/underapplied. Pag
Transcribed Image Text:At the beginning of the year Grey Corporation estimated the following: Assembly Department $ 840,000 Overhead Direct labor hours 80,000 hrs. Machine hours 20,000 hrs. Overhead Direct labor hours Grey uses departmental overhead rates. In the assembly department, overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows: Packaging Department $ 20,400 Assembly Department $ 42,759 Packaging Department $ 210,000 4,000 hrs. Machine hours 1,000 hrs. Required: 4,000 hrs. 12,000 hrs. 300 hrs. 1,200 hrs. A.) Calculate the predetermined overhead rate for the assembly and packaging departments. B.) Calculate the overhead applied to production in each department for the month of April. C.) Calculate how much each department's overhead is overapplied/underapplied. Pag
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