1. Ibra Computer Co. sells computers and internet equipment. It has the following information for the year: Overhead cost Computer hours Direct labor hours Estimated RO.6,200,000 310,000 62,000 Actual R.O.4,500,000 90,000 150,000 Overhead is applied on the basis of direct labor hours. Instructions a. Compute the predetermined overhead rate. b. Determine the amount of overhead under or over-applied for the year.

1. Ibra Computer Co. sells computers and internet equipment. It has the following information for the year: Overhead cost Computer hours Direct labor hours Estimated RO.6,200,000 310,000 62,000 Actual R.O.4,500,000 90,000 150,000 Overhead is applied on the basis of direct labor hours. Instructions a. Compute the predetermined overhead rate. b. Determine the amount of overhead under or over-applied for the year.

Name: 1. Ibra Computer Co. sells computers and internet equipment. It has t
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Description: 1. Ibra Computer Co. sells computers and internet equipment. It has the followinginformation for the year:Overhead costComputer hoursDirect labor hoursEstimatedRO.6,200,000310,00062,000ActualR.O.4,500,00090,000150,000Overhead is applied on the basis

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 11EB: A company has the following information relating to its production costs: Compute the actual and...

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When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
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