The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hour will be 300,000 hours. Year to date, the actual overhead is $16,000,000, and the actual machine hours are 330,000 hours. Suppose the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead as of this point in time (year to date). In that case, the overhead is over/under applied by: A. $1,000,000 overapplied B. $1,000,000 underapplied C. $500,000 overapplied D. $500,000 underapplied

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hour will be 300,000 hours. Year to date, the actual overhead is $16,000,000, and the actual machine hours are 330,000 hours. Suppose the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead as of this point in time (year to date). In that case, the overhead is over/under applied by: A. $1,000,000 overapplied B. $1,000,000 underapplied C. $500,000 overapplied D. $500,000 underapplied

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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What is predetermined overhead rate?
Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is a.$48 per machine hour b.$45 per machine hour c.$50 per machine hour d.$62 per machine hour
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The Thomlin Company forecasts that total factory overhead for the current year will be $11,759,000 with 150,000 total machine hours. Year to date, the actual factory overhead is $7,604,000 and the actual machine hours are 100,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a. $-294,000 overapplied b. $-196,000 overapplied c. $-294,000 underapplied d. $-196,000 underapplied
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The predetermined overhead rate per machine hours should be. General accounting
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