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Answer

Overhead

$4.99


6.       Moody Corporation uses a job- order costing system with a plantwide overhead rate based on machine- hours. At the beginning of the year, the company made the following estimates: Machine- hours required to support estimated production . . . . . . 100,000 Fixed manufacturing overhead cost . . . . . . . . . . . . . . . . . . . . . . . . $ 650,000 Variable manufacturing overhead cost per machine- hour . . . . . $ 3.00 Required: 1. Compute the predetermined overhead rate. 2.       During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials requisitioned . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 450 Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 210 Machine- hours used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Compute the total manufacturing cost assigned to Job 400. 3. During the year, the company worked a total of 146,000 machine- hours on all jobs and incurred actual manufacturing overhead costs of $ 1,350,000. What is the amount of underap-plied or overapplied overhead for the year? If this amount were closed out entirely to Cost of Goods Sold would the journal entry increase or decrease net operating income?