Exercise 3-4 (Algo) Underapplied and Overapplied Overhead [LO3-4] Osborn Manufacturing uses a predetermined overhead rate of $19.10 per direct labor-hour. This predetermined rate was b cost formula that estimates $246,390 of total manufacturing overhead for an estimated activity level of 12,900 direct labo The company actually incurred $245,000 of manufacturing overhead and 12,400 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal e dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? Answer is complete but not entirely correct. 1. Manufacturing overhead 2. The gross margin would underapplied decrease by $ 8,610 ✓ by $ (8,160)

Exercise 3-4 (Algo) Underapplied and Overapplied Overhead [LO3-4] Osborn Manufacturing uses a predetermined overhead rate of $19.10 per direct labor-hour. This predetermined rate was b cost formula that estimates $246,390 of total manufacturing overhead for an estimated activity level of 12,900 direct labo The company actually incurred $245,000 of manufacturing overhead and 12,400 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal e dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? Answer is complete but not entirely correct. 1. Manufacturing overhead 2. The gross margin would underapplied decrease by $ 8,610 ✓ by $ (8,160)

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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Use the following accounts; Cash Foreign exchange gain Foreign exchange loss Capital Bank Short-term investments Loss on sale of short-term investment Gain on sale of short-term investment RA established his own company, r@ktas Co. The following transactions are the events that occurred during December 2018, the company's first month: Date 12/1 The owner invested $ 200,000 cash for capital. 12/5 r@ktas Co., opened deposit account on Don't Trust Bank and put 2.000 Euro (Exchange rate was 1 Euro= 1,5 Dollar) 12/10 The Company purchased short-term investment with cash for $2,500. 12/18 The Company sold short-term investment with cash for $2.000 Note: • Exchange rate was 1 Euro= 1,4 Dollar at the end of the period. Requirements: 1- Give the journal entry for each transaction. 2- Post each transaction to Taccounts.
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