Exercise 11-5A (Algo) Treatment of overapplied or underapplied overhead LO 11-2 Pawhuska Company estimates that its overhead costs for Year 2 will be $594,000 and output in units of product will be 270,000 units. Required a. Calculate Pawhuska's predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.) b. If 22,000 units of product were made in March Year 2, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations.) c. If actual overhead costs in March were $46,900, would overhead be overapplied or underapplied and by how much? (Do not round intermediate calculations.) a. Predetermined overhead rate b. Allocated overhead cost c. Overhead costs per unit

Exercise 11-5A (Algo) Treatment of overapplied or underapplied overhead LO 11-2 Pawhuska Company estimates that its overhead costs for Year 2 will be $594,000 and output in units of product will be 270,000 units. Required a. Calculate Pawhuska's predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.) b. If 22,000 units of product were made in March Year 2, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations.) c. If actual overhead costs in March were $46,900, would overhead be overapplied or underapplied and by how much? (Do not round intermediate calculations.) a. Predetermined overhead rate b. Allocated overhead cost c. Overhead costs per unit

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Description: Exercise 11-5A (Algo) Treatment of overapplied or underapplied overhead LO 11-2Pawhuska Company estimates that its overhead costs for Year 2 will be $594,000 and output in units of product will be 270,000 units.Requireda. Calculate Pawhuska's predet

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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