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AB Corporation (ABCorp) manufactures rehabilitation aids including knee braces and crutches. ABCorp planned to use...

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Accounting

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AB Corporation (ABCorp) manufactures rehabilitation 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 estimated that their manufacturing overhead cost for the year would total $820,000. actual product costs were $480,000 for direct materials, $360,000 for direct labour and $860,700 for manufacturing Hint: Be clear on your proxy for manufacturing overhead Use the information provided to answer the following questions: 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 adjusting entry is made

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