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Hammatt Inc. provides a variety of services for commercial clients. Hammatt destroys any paper client records after seven years and the shredded paper is sold to a recycling company. The net realizable value of the recycled paper is treated as a reduction to operating overhead. The following data pertain to operations for the year: Budgeted operating overhead $1,245,600 Actual operating overhead $1,231,500 Budgeted net realizable value of recycled paper Actual net realizable value of recycled paper $27,600 $29,100 Budgeted billable hours 210,000 Actual billable hours 212,700 a. Assuming that number of billable hours is the allocation base, what was the company's predetermined overhead rate? $ 0 b. Record the journal entry for the sale of the recycled paper. Account Debit Credit 2$ 0 $ To record sale of by-product c. What was the company's underapplied or overapplied overhead for the year? Note: Do not use a negative sign with your answer. $ 0

Hammatt Inc. provides a variety of services for commercial clients. Hammatt destroys any paper client records after seven years and the shredded paper is sold to a recycling company. The net realizable value of the recycled paper is treated as a reduction to operating overhead. The following data pertain to operations for the year: Budgeted operating overhead $1,245,600 Actual operating overhead $1,231,500 Budgeted net realizable value of recycled paper Actual net realizable value of recycled paper $27,600 $29,100 Budgeted billable hours 210,000 Actual billable hours 212,700 a. Assuming that number of billable hours is the allocation base, what was the company's predetermined overhead rate? $ 0 b. Record the journal entry for the sale of the recycled paper. Account Debit Credit 2$ 0 $ To record sale of by-product c. What was the company's underapplied or overapplied overhead for the year? Note: Do not use a negative sign with your answer. $ 0

Essentials of Business Analytics (MindTap Course List)
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter12: Integer Linear Optimization_models
Section: Chapter Questions
Problem 1P: STAR Co. provides paper to smaller companies with volumes that are not large enough to warrant...
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Hammatt Inc. provides a variety of services for commercial clients. Hammatt destroys any paper client records after seven years and the shredded paper is sold to a recycling company. The net realizable value of the recycled paper is treated as a reduction to operating overhead. The following data pertain to operations for the year: Budgeted operating overhead $1,245,600 Actual operating overhead $1,231,500 Budgeted net realizable value of recycled paper $27,600 Actual net realizable value of recycled paper $29,100 Budgeted billable hours 210,000 Actual billable hours 212,700 a. Assuming that number of billable hours is the allocation base, what was the company's predetermined overhead rate? $ 0 b. Record the journal entry for the sale of the recycled paper. Account Debit Credit $ 0 $ To record sale of by-product c. What was the company's underapplied or overapplied overhead for the year? Note: Do not use a negative sign with your answer. $ 0
Transcribed Image Text:Hammatt Inc. provides a variety of services for commercial clients. Hammatt destroys any paper client records after seven years and the shredded paper is sold to a recycling company. The net realizable value of the recycled paper is treated as a reduction to operating overhead. The following data pertain to operations for the year: Budgeted operating overhead $1,245,600 Actual operating overhead $1,231,500 Budgeted net realizable value of recycled paper $27,600 Actual net realizable value of recycled paper $29,100 Budgeted billable hours 210,000 Actual billable hours 212,700 a. Assuming that number of billable hours is the allocation base, what was the company's predetermined overhead rate? $ 0 b. Record the journal entry for the sale of the recycled paper. Account Debit Credit $ 0 $ To record sale of by-product c. What was the company's underapplied or overapplied overhead for the year? Note: Do not use a negative sign with your answer. $ 0
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