MPX Resources uses absorption costing with a predetermined hourly fixed overhead absorption rate. For the yearended 31 December 2023, the following situations arose:1. Actual overheads were less than the budgeted expenditure; and2. Actual hours worked were less that the budgeted hours used to set the predetermine overhead absorption rate.Required:Which of the following statements is correct?OA. Both situations would cause the overheads to be over-absorbed.OB. Both situations would cause the overheads to be under-absorbed.OC. Situation 1 would cause the overheads to be under-absorbed and situation 2 would cause the overheads to be over-absorbed.OD. Situation 1 would cause the overheads to be over-absorbed and situation 2 would cause the overheads to be under-absorbed.

Situation 1this will cause the overhead to be over-absorbed this is because the actual overhead…

Answered: MPX Resources uses absorption costing…

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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am. 104.
Which of the following statements is true regarding a predetermined overhead rate based on capacity? Multiple Choice It is usually lower than a predetermined overhead rate based on budgeted output for the coming period. It is usually higher than a predetermined overhead rate based on budgeted output for the coming period. It will usually be the same as a predetermined overhead rate based on budgeted output for the coming period. It is most often used for external financial reporting purposes.
I need help finding the accurate solution to this general accounting problem with valid methods.
If the predetermined overhead rate is based on the estimated level of activity for the current period, then products will be charged only for the capacity that they use and will not be charged for the capacity they don't use. True or False True False
Which of the following statements is incorrect? O A. If MOH is overallocated to a job that has been sold, and the company calculates sales price by marking up job costs, the job will likely be underpriced. O B. The formula to arrive at the POHR is total budgeted manufacturing overhead divided by total estimated allocation base. O C. To calculate the increase to WIP for allocated MOH costs, the POHR is multiplied by the actual amount of the allocation based used by the cost object. D. "Number of units" is typically not an appropriate allocation base for MOH because the company's products do not consume equal overhead resources. If the over/underallocated MOH is fairly large and the majority of the units have not been sold, the balance in MOH should be prorated between WIP, FG, and COGS. O E.
Management Accounting Questions MCQ 1. Which of the following statements comparing the weighted-average method with the FIFO method of accounting for cost flows is incorrect? a)Using the FIFO method, the equivalent units are calculated differently from the weighted-average method because the equivalent work done on the opening work-in-progress last period is excluded from the computation. b)The weighted-average method averages the costs associated with the work done in the previous period with the costs incurred in the current period. c)The fact that there are two different methods suggests that it is not possible to state which method provides more accurate results. d) When there are no beginning inventories or ending inventories, both methods will provide identical results. 2. Which of the following statements about a process costing system is incorrect? a) In a process costing system, there is a work-in-progress account for each processing department. b) In a process costing…
If annual overhead costs are expected to be $ 784000 and direct labor costs are expected to be $ 1000000, then if the activity base is direct labor costs: a. a predetermined overhead rate cannot be determined. b. for every dollar of manufacturing overhead, 1.28 cents of direct labor will be assigned. c. for every dollar of direct labor, 78.4 cents of manufacturing overhead will be assigned. d. $ 1.28 is the predetermined overhead rate.
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I've completed most of the problem, but I cannot figure out the table on req 3 what I have so far is correct. I've attached photos below
I need help with this general accounting question using standard accounting techniques.

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