Using the Lower of Cost or Market (LCM) rule, calculate the total value of the inventory on December 31. The Madison Consulting Group tracks its office overhead costs carefully. During the past year, the following overhead costs were incurred: Office rent: $48,200 Office supplies: $7,840 Utilities: $16,380 Administrative salaries: $98,600 Insurance: $12,450 Depreciation- office equipment: $15,730 Software subscriptions: $22,900 Miscellaneous expenses: $28,900 Total overhead costs: $251,000 The company uses a predetermined overhead rate of $8 per consulting hour to apply overhead to client projects. During the year, consultants recorded 30,400 hours of work. Calculate the amount of under- or overapplied overhead for the year.

Using the Lower of Cost or Market (LCM) rule, calculate the total value of the inventory on December 31. The Madison Consulting Group tracks its office overhead costs carefully. During the past year, the following overhead costs were incurred: Office rent: $48,200 Office supplies: $7,840 Utilities: $16,380 Administrative salaries: $98,600 Insurance: $12,450 Depreciation- office equipment: $15,730 Software subscriptions: $22,900 Miscellaneous expenses: $28,900 Total overhead costs: $251,000 The company uses a predetermined overhead rate of $8 per consulting hour to apply overhead to client projects. During the year, consultants recorded 30,400 hours of work. Calculate the amount of under- or overapplied overhead for the year.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter7: Inventory Cost Flow Assumptions (fifolifo)

Section: Chapter Questions

Problem 9R: Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a...

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