intain Peaks applies overhead on the basis of machine hours and reports the following information: Actual Overhead Machine hours Direct materials Direct labor Feedback Budget $150,000 30,000 Check Mock $144,000 27,000 A. What is the predetermined overhead rate? 5✔ per machine hour B. How much overhead was applied during the year? 135,000 ✓ machine hours C. Was overhead over- or underapplied, and by what amount? Underapplied ✓$ 9,000 ✓ $210,000 $350,000
intain Peaks applies overhead on the basis of machine hours and reports the following information: Actual Overhead Machine hours Direct materials Direct labor Feedback Budget $150,000 30,000 Check Mock $144,000 27,000 A. What is the predetermined overhead rate? 5✔ per machine hour B. How much overhead was applied during the year? 135,000 ✓ machine hours C. Was overhead over- or underapplied, and by what amount? Underapplied ✓$ 9,000 ✓ $210,000 $350,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Mountain Peaks applies overhead on the basis of machine hours and reports the following information:
Budget
Actual
$150,000
30,000
Overhead
Machine hours
Direct materials
Direct labor
A. What is the predetermined overhead rate?
5✓ per machine hour
B. How much overhead was applied during the year?
135,000✔ machine hours
$144,000
27,000
$210,000
$350,000
C. Was overhead over- or underapplied, and by what amount?
9,000 ✓
Underapplied
Feedback
Check My Work
Use budgeted amounts to calculate the predetermined overhead rate. The amount is then used to determine the overhead applied (along with ot
overapplied.
D. What is the journal entry to dispose of the over- or underapplied overhead? If an amount box does not require an entry, leave it blank.
Cost of Goods Sold
18
Manufacturing Overhead
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