lohlin Medical Supply (MMS) produces extraordinary surgical equipment. The company's CFO is preparing formation for the management team that explains November's month-end adjustment to cost-of-goods sold. come BEFORE the overhead adjustment = $797,000. Income AFTER the overhead adjustment = $809,000. The djustment reflects the ACTUAL overhead of $320,000. The original planning budget used the following ssumptions: (1) overhead = $300,000 (2) direct labor hours = 12,000, and (3) machine hours = 7,500. MMS oplies overhead on the basis of direct labor hours.

lohlin Medical Supply (MMS) produces extraordinary surgical equipment. The company's CFO is preparing formation for the management team that explains November's month-end adjustment to cost-of-goods sold. come BEFORE the overhead adjustment = $797,000. Income AFTER the overhead adjustment = $809,000. The djustment reflects the ACTUAL overhead of $320,000. The original planning budget used the following ssumptions: (1) overhead = $300,000 (2) direct labor hours = 12,000, and (3) machine hours = 7,500. MMS oplies overhead on the basis of direct labor hours.

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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