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nachine-hours (MHs) to allocate their manufacturing nized the cost of unused (idle) capacity of $600 on ti much was the company's estimated MHs for planned Il fixed) $

nachine-hours (MHs) to allocate their manufacturing nized the cost of unused (idle) capacity of $600 on ti much was the company's estimated MHs for planned Il fixed) $

FINANCIAL ACCOUNTING
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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16 Hurawalhi Company uses machine-hours (MHs) to allocate their manufacturing overhead (MOH) cost with capacity-based method. The company recognized the cost of unused (idle) capacity of $600 on the income statement last year. Given the following information, how much was the company's estimated MHs for planned production last year? Estimated MOH cost (all fixed) $ Estimated MHs for planned production Estimated MHs at capacity ? MHs ? MHs $ 12 per MH $ 10 per MH POHR using the traditional method POHR at capacity А. 72 MHs В. 250 MHs С. 300 MHs D. 350 МHs E. 360 MHs
Transcribed Image Text:16 Hurawalhi Company uses machine-hours (MHs) to allocate their manufacturing overhead (MOH) cost with capacity-based method. The company recognized the cost of unused (idle) capacity of $600 on the income statement last year. Given the following information, how much was the company's estimated MHs for planned production last year? Estimated MOH cost (all fixed) $ Estimated MHs for planned production Estimated MHs at capacity ? MHs ? MHs $ 12 per MH $ 10 per MH POHR using the traditional method POHR at capacity А. 72 MHs В. 250 MHs С. 300 MHs D. 350 МHs E. 360 MHs
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