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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
At year-end 2010, Dubs Wind Generator Co. had a $40,000 debit balance in its Manufacturing Overhead Control account. Overhead is applied to products based on direct labor cost. Relevant account balance information at year-end follows:
A. What predetermined OH rate was used during the year?
B. Provide arguements to be used for deciding whether to prorate the balance in the overhead account at year-end.
C. Prorate the overhead account balance based on the relative balances of the appropriate accounts.
D. Identify some possible reasons that the company had a debit balance in the overhead account at year end.
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