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In December 2019, MediaWorks established its predetermined overhead rate for movies produced during the year 2020 by using the following cost predictions: overhead costs, $2,400,000, and direct labor costs, $500,000. At year-end 2020, the company's records show that actual overhead costs for the year are $2,380,000. Actual direct labor costs had been assigned to jobs as follows: . Movies completed and released: $600,000 • Movies still in production: $50,000 Total actual direct labor cost: $500,000 Required: • What is the predetermined overhead rate for the year? . How much overhead was applied during the year? . Is the overhead overapplied or underapplied? By how much?

In December 2019, MediaWorks established its predetermined overhead rate for movies produced during the year 2020 by using the following cost predictions: overhead costs, $2,400,000, and direct labor costs, $500,000. At year-end 2020, the company's records show that actual overhead costs for the year are $2,380,000. Actual direct labor costs had been assigned to jobs as follows: . Movies completed and released: $600,000 • Movies still in production: $50,000 Total actual direct labor cost: $500,000 Required: • What is the predetermined overhead rate for the year? . How much overhead was applied during the year? . Is the overhead overapplied or underapplied? By how much?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EB: The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method,...
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In December 2019, MediaWorks established its predetermined overhead rate for movies produced during the year 2020 by using the following cost predictions: overhead costs, $2,400,000, and direct labor costs, $500,000. At year-end 2020, the company's records show that actual overhead costs for the year are $2,380,000. Actual direct labor costs had been assigned to jobs as follows: . Movies completed and released: $600,000 • Movies still in production: $50,000 Total actual direct labor cost: $500,000 Required: • What is the predetermined overhead rate for the year? . How much overhead was applied during the year? . Is the overhead overapplied or underapplied? By how much?
Transcribed Image Text:In December 2019, MediaWorks established its predetermined overhead rate for movies produced during the year 2020 by using the following cost predictions: overhead costs, $2,400,000, and direct labor costs, $500,000. At year-end 2020, the company's records show that actual overhead costs for the year are $2,380,000. Actual direct labor costs had been assigned to jobs as follows: . Movies completed and released: $600,000 • Movies still in production: $50,000 Total actual direct labor cost: $500,000 Required: • What is the predetermined overhead rate for the year? . How much overhead was applied during the year? . Is the overhead overapplied or underapplied? By how much?
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