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Chloe Corporation uses a job order cost system with manufacturing overhead applied products on the...

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Accounting

Chloe Corporation uses a job order cost system with manufacturing overhead applied products on the basis of direct labor ho
For the upcoming year, Chloe Corporation estimated total manufacturing overhead costat $480,000 and total direct labor hours
40,000. During the year, actual manufacturing overhead incurred was $462,500 and 41,000 direct labor hours were used.
Required:
a. Calculate the predetermined overhead rate.
b. Calculate how much manufacturing overhead will be applied to production.
c. Is overhead over- or underapplied? By how much?
d. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?
Complete this question by entering your answers in the tabs below.
Required A
Calculate the predetermined overhead rate.
Tot. Man Coast = D.Mat + D. Lab + Appp. MOH
Ovureal Rate
COGMan = Beg. WIP Inv + Tot. Man- Ending
GOG Sold = Beg fin. goods Inve cog Man- End fin qoods Inv
Underfover APP Man.OH: Under-MOH ICOG Over-MOH darrGOG
Aver Unit cost = Tot. Man. Costs/Tot. Units produed
Activ. Rate = Total Act. Cost / Total Act. Base
Target Lost: Market price - target price
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