Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 4, Problem 4.34P

1.

To determine

To compute: The budgeted manufacturing overhead rate.

Given information:

2014,

Budgeted manufacturing overhead cost is $4,800,000.

Budgeted machine hour is $80,000.

2.a

To determine

To compute: The under or over allocated manufacturing overhead of Z dispose off by write off to cost of goods sold method.

b.

To determine

To compute: The under or over allocated manufacturing overhead of Z dispose off by proration based on ending balance.

c.

To determine

To compute: The under or over allocated manufacturing overhead of Z dispose off by proration based on overhead allocated in 2014.

3.

To determine

To explain: The method applies by company to dispose the under allocated manufacturing overhead among the above three options.

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