Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and appliesmanufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a costformula that estimates $1,068,000 of total manufacturing overhead for an estimated activity level of 89,000 machine-hours.During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in thecompany's warehouse. The company's cost records revealed the following actual cost and operating data for the year:Machine-hoursManufacturing overhead costInventories at year-end:Raw materialsWork in process (includes overhead applied of $44,400)Finished goods (includes overhead applied of $150,960)Cost of goods sold (includes overhead applied of $692,640)Required:1. Compute the predetermined overhead rate used by the company during the year.2. Is Manufacturing Overhead underapplied or overapplied for the year?3. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account.Complete this question by entering your answers in the tabs below.Required 374,000$ 759,000Required 1$ 10,000$ 91,000$ 309,400$ 1,419,600Required 1 Required 2Compute the predetermined overhead rate used by the company during the year.Predetermined overhead rateper hourRequired 2

Name: Luzadis Company makes furniture using the latest automated technology
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and appliesmanufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a costf