Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Aug 2017 My Price 7.00

Cretin Enterprises

EXERCISE 5–8 Underapplied and Overapplied Overhead [LO7]

Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labour-hour. This predetermined rate was based on 16,000 estimated direct labour-hours and $342,400 of esti- mated total manufacturing overhead.

The company incurred actual total manufacturing overhead costs of $345,000 and 16,500 total direct labour-hours during the period. There were no beginning inventories, and all goods produced in the period were shipped out to customers before  period-end.

 

 

 

 

 

Required:

1.              Determine the amount of underapplied or overapplied manufacturing overhead for the period.

2.              What is the effect on gross margin for the period?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Aug 2017 12:08 AM My Price 7.00

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