3 Juneau, Inc. uses job-order costing with manufacturing overhead (MOH) applied on the basis of machine hours (MHs). In the past, the company's pre-determined overhead rate (POHR) has fluctuated from period to period due primarily to differences in expected usage of their machine. For the coming month, the controller would like to investigate using capacity in determining the application of overhead to jobs. For the period, the machine can operate at a capacity of 320 MHs, however, based on expected production, it is estimated that only 290 MHs will be required. MOH is relatively fixed for the company and is estimated to be $11,600 at/ both of these levels of MHs. At the end of the period, the controller found that production used 294 MHs and actual MOH totaled $11,745. How much less MOH would be applied during the month using capacity MHs versus the traditional method? $ 1,102.50 less applied MOH using capacity. $ 1,249.50 less applied MOH using capacity. $ 1,087.50 less applied MOH using capacity. $ 1,247.50 less applied MOH using capacity. А. В. С. D. E. None of the above
3 Juneau, Inc. uses job-order costing with manufacturing overhead (MOH) applied on the basis of machine hours (MHs). In the past, the company's pre-determined overhead rate (POHR) has fluctuated from period to period due primarily to differences in expected usage of their machine. For the coming month, the controller would like to investigate using capacity in determining the application of overhead to jobs. For the period, the machine can operate at a capacity of 320 MHs, however, based on expected production, it is estimated that only 290 MHs will be required. MOH is relatively fixed for the company and is estimated to be $11,600 at/ both of these levels of MHs. At the end of the period, the controller found that production used 294 MHs and actual MOH totaled $11,745. How much less MOH would be applied during the month using capacity MHs versus the traditional method? $ 1,102.50 less applied MOH using capacity. $ 1,249.50 less applied MOH using capacity. $ 1,087.50 less applied MOH using capacity. $ 1,247.50 less applied MOH using capacity. А. В. С. D. E. None of the above
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...
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