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Lucky Ducks uses a predetermined overhead rate to apply FOH to production based on machine...

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Accounting

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Lucky Ducks uses a predetermined overhead rate to apply FOH to production based on machine hours. At the beginning of the year FOH was estimated to be $100,000 and machine hours to be 20,000. During the year they had the following FOH costs: Actual machine hours used during the year were 21,000 . Evaluate the following statements: 1. $106,000 of FOH was applied to production 2. FOH is $7,000 overapplied this year 3. The journal entry to close out FOH at the end of the year, CGS will be credited. Only Statement \#1 is true Only Statement \#2 is true Only Statement #3 is true Only Statement \#1 is true Only Statement \#2 is true Only Statement \#3 is true Only Statements \#1 and \#3 are true Only Statements #2 and #3 are true Only Statements \#1 and \#2 are true All of the Statements are false All of the Statements are true

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