EBK CONCEPTS IN FEDERAL TAXATION 2019
26th Edition
ISBN: 9781337671774
Author: Murphy
Publisher: CENGAGE LEARNING - CONSIGNMENT
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1. Compute a predetermined overhead rate for the plant as a whole based on machine hours. Round your answer to two decimal places.
per machine hour
2. Compute predetermined overhead rates for each department using machine hours. (Note: Round to two decimal places, if necessary.)
Department A
Department B
per machine hour
per machine hour
3. Conceptual Connection: Job 73 used 20 machine hours from Department A and 50 machine hours from Department B. Job 74 used 50 machine hours from Department A and 20 machine hours from De
Compute the overhead cost assigned to each job using the plantwide rate computed in Requirement 1. Repeat the computation using the departmental rates found in Requirement 2. Round final answers to
cent, if necessary.
Job 73
Job 74
Plantwide
Departmental
Which of the two approaches gives the fairer assignment?
4. Conceptual Connection: Repeat Requirement 3, assuming the expected overhead cost for Department B is $94,000 (not $69,000). Round overhead rates…
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