Westside Manufacturing uses a predetermined overhead rate based on machine hours. For the coming year, the company estimated total manufacturing overhead to be $5,400,000 and total machine hours to be 90,000 hours. a) Calculate Westside's predetermined overhead rate. In April, Westside Manufacturing incurred actual overhead costs of $480,000 and used 7,500 machine hours. b) Determine whether Westside's overhead for April was over-applied or under-applied, and by how much.

Westside Manufacturing uses a predetermined overhead rate based on machine hours. For the coming year, the company estimated total manufacturing overhead to be $5,400,000 and total machine hours to be 90,000 hours. a) Calculate Westside's predetermined overhead rate. In April, Westside Manufacturing incurred actual overhead costs of $480,000 and used 7,500 machine hours. b) Determine whether Westside's overhead for April was over-applied or under-applied, and by how much.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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