Q.No. 23 (Financial Accounting) Merger Manufacturing uses direct labor cost as the allocation base for applying MOH to WIP. The budgeted direct labor cost for the year was $1,100,000. The budgeted manufacturing overhead was $930,000. The actual direct labor cost for the year was $1,300,000. The actual manufacturing overhead was $955,000. A. What was Merger's predetermined manufacturing overhead rate per direct labor dollars? B. How much MOH was applied to WIP during the year?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
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23 financial Accounting

Q.No. 23 (Financial Accounting)
Merger Manufacturing uses direct labor cost as the allocation base for
applying MOH to WIP. The budgeted direct labor cost for the year was
$1,100,000. The budgeted manufacturing overhead was $930,000. The actual
direct labor cost for the year was $1,300,000. The actual manufacturing
overhead was $955,000.
A. What was Merger's predetermined manufacturing overhead rate per
direct labor dollars?
B. How much MOH was applied to WIP during the year?
Transcribed Image Text:Q.No. 23 (Financial Accounting) Merger Manufacturing uses direct labor cost as the allocation base for applying MOH to WIP. The budgeted direct labor cost for the year was $1,100,000. The budgeted manufacturing overhead was $930,000. The actual direct labor cost for the year was $1,300,000. The actual manufacturing overhead was $955,000. A. What was Merger's predetermined manufacturing overhead rate per direct labor dollars? B. How much MOH was applied to WIP during the year?
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