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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Williams Inc. manufactures quality clothing. The company uses a normal costing system, using a predetermined overhead rate to charge overhead cost to production. The overhead rate for the current month was based on estimated overhead costs of $24,000, and 6,000 machine hours. The following data relate to the activities for the month of December, 2016.
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Manufacturing overhead costs incurred:
Property taxes............................. $ 1,600
Utilities, factory......................... 2,600
Depreciation, factory.................. 13,000
Insurance, factory........................ 4,500
Indirect labor............................ 5,100
Other costs incurred:
Purchase of raw materials......... $15,000
Direct labor cost................... 2,000
Selling and administrative costs… 99,000
Inventories:
Raw materials, beginning............ $ 5,000
Raw materials, ending............... 4,400
Work in process, beginning.......... 3,500
Work in process, ending............. 4,500
Actual machine hours................... 7,000
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Required:
1. Compute the predetermined overhead rate.
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2. Compute the amount of applied overhead cost for the month of December.
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3. Prepare the journal entry to dispose of the under- or over-applied overhead. The amount is considered immaterial and not prorated. Omit the journal entry explanation.
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------sol-----------uti-----------on.-----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be----------- ca-----------tch-----------