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AB Corpora$$on $($ABCorp$)$ manufactures rehabilita$$on aids including knee braces and crutches. ABCorp

planned to use $40,000$ direct labour hours and $82,000$ machine hours for the year. The company

also es$$mated that their manufacturing overhead cost for the year would total $$820,000.$

At the end of the year, ABCorp actually incurred $38,000$ direct labour hours and $87,200$ machine hours.

The company's actual product costs were $$480,000$ for direct materials, $$360,000$ for direct labour and

$$860,700$ for manufacturing overhead. ABCorp uses machine hours to apply the overhead.

Hint: Be clear on your ac$$vity for manufacturing overhead

Use the informa$$on provided to answer the following ques$$ons:

a$)$ ABCorp's prime cost for the year is$?$

b$)$ ABCorp's pre$-$determined overhead rate Is$?.$

c$)$ The total of the applied overhead for the year was?

d$)$ Was ABCorp's overhead under$-$ or over$-$applied and by what amount?

e$)$ ABCorp assigns under$-$ or over$-$applied overhead to Cost of Goods Sold. If ABCorp's overhead cost

is under$-$applied would the value of cost of goods sold increase or decrease when the adjus$$ng entry is

made?AB Corpora$$on $($ABCorp$)$ manufactures rehabilita$$on aids including knee braces and crutches. ABCorp

planned to use $40,000$ direct labour hours and $82,000$ machine hours for the year. The company

also es$$mated that their manufacturing overhead cost for the year would total $$820,000.$

At the end of the year, ABCorp actually incurred $38,000$ direct labour hours and $87,200$ machine hours.

The company's actual product costs were $$480,000$ for direct materials, $$360,000$ for direct labour and

$$860,700$ for manufacturing overhead. ABCorp uses machine hours to apply the overhead.

Hint: Be clear on your ac$$vity for manufacturing overhead

Use the informa$$on provided to answer the following ques$$ons:

a$)$ ABCorp's prime cost for the year is$?$

b$)$ ABCorp's pre$-$determined overhead rate Is$?.$

c$)$ The total of the applied overhead for the year was?

d$)$ Was ABCorp's overhead under$-$ or over$-$applied and by what amount?

e$)$ ABCorp assigns under$-$ or over$-$applied overhead to Cost of Goods Sold. If ABCorp's overhead cost

is under$-$applied would the value of cost of goods sold increase or decrease when the adjus$$ng entry is

made

can you break down all the a$,$b$,$c$,$d$,$e so i can understand each step and go through it and i can learn from that

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