Maurice Tutor

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Category > Accounting Posted 27 Sep 2017 My Price 8.00

Osborn Manufacturing

Osborn Manufacturing uses a predetermined overhead rate of $19.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12,800 direct labor-hours.

The company incurred actual total manufacturing overhead costs of $241,000 and 12,300 total direct labor-hours during the period.

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

Manufacturing overhead ____________(answer under/over applied) by _____________

2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period?

The gross margin would ___________(answer increase/decrease) by ____________


Please explain, I'm lost with this stuff right now. Thanks!

Answers

Maurice Tutor
(5)
Status NEW Posted 27 Sep 2017 08:09 PM My Price 8.00

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