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XYZ Ltd incurred $500 000 of manufacturing overhead costs during the financial year 2021. However, only $400 000 of overhead was applied to production. At the end of the financial year, thefollowing amounts of the applied overhead remained in the various manufacturing accounts: a). Overapplied/(undeapplied) = Applied overhead- actual overhead So = $400000 - $500 000 = (100 000) . So underapplied overhead was of $100 000. Required: Show your calculation to prorate the amount calculated in (a) above, to the three manufacturing accounts.

XYZ Ltd incurred $500 000 of manufacturing overhead costs during the financial year 2021. However, only $400 000 of overhead was applied to production. At the end of the financial year, thefollowing amounts of the applied overhead remained in the various manufacturing accounts: a). Overapplied/(undeapplied) = Applied overhead- actual overhead So = $400000 - $500 000 = (100 000) . So underapplied overhead was of $100 000. Required: Show your calculation to prorate the amount calculated in (a) above, to the three manufacturing accounts.

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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XYZ Ltd incurred $500 000 of manufacturing overhead costs during the financial year 2021. However, only $400 000 of overhead was applied to production. At the end of the financial year, thefollowing amounts of the applied overhead remained in the various manufacturing accounts: a). Overapplied/(undeapplied) = Applied overhead- actual overhead So = $400000 - $500 000 = (100 000) . So underapplied overhead was of $100 000. Required: Show your calculation to prorate the amount calculated in (a) above, to the three manufacturing accounts. ############correct answer from experts please.
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