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segin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing overhead rate

segin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing overhead rate

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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The Wamth Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: E (Click the icon to view the following data ). Data Table Read the i Requirements Requirer Budgeted manufacturing overhead costs $ 5,850,000 Begin by 1. Compute the budgeted manufacturing overhead rate for 2017. Overhead allocation base Machine-hours 2. Compute the under- or overallocated manufacturing overhead of Wamth Radiator in 2017. Dispose of this amount using the following: Budgeted machine-hours 90,000 a. Write-off to Cost of Goods Sold Manufacturing overhead costs incurred 6,050,000 b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cos Goods Sold Actual machine-hours 85,000 c. Proration based on the overhead allocated in 2017 (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, Machine-hours data and the ending balances (before proration of under- or overallocated overhead) are as foll and Cost of Goods Sold Actual Machine-Hours 2017 End-of-Year Balance 3. Which method do you prefer in requirement 2? Explain. Cost of Goods Sold 68,000 $ 8,800,000 Finished Goods Control 10,000 1,650,000 Choose f Print Done 7,000 Work-in-Process Control 550,000
Transcribed Image Text:The Wamth Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: E (Click the icon to view the following data ). Data Table Read the i Requirements Requirer Budgeted manufacturing overhead costs $ 5,850,000 Begin by 1. Compute the budgeted manufacturing overhead rate for 2017. Overhead allocation base Machine-hours 2. Compute the under- or overallocated manufacturing overhead of Wamth Radiator in 2017. Dispose of this amount using the following: Budgeted machine-hours 90,000 a. Write-off to Cost of Goods Sold Manufacturing overhead costs incurred 6,050,000 b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cos Goods Sold Actual machine-hours 85,000 c. Proration based on the overhead allocated in 2017 (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, Machine-hours data and the ending balances (before proration of under- or overallocated overhead) are as foll and Cost of Goods Sold Actual Machine-Hours 2017 End-of-Year Balance 3. Which method do you prefer in requirement 2? Explain. Cost of Goods Sold 68,000 $ 8,800,000 Finished Goods Control 10,000 1,650,000 Choose f Print Done 7,000 Work-in-Process Control 550,000
The Wamth Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: (Click the icon to view the following data.) Read the requirements. Requirement 1. Compute the budgeted manufacturing overhead rate for 2017. Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing overhead rate %3D II
Transcribed Image Text:The Wamth Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: (Click the icon to view the following data.) Read the requirements. Requirement 1. Compute the budgeted manufacturing overhead rate for 2017. Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing overhead rate %3D II
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