Boston College Operations And Supply Chain Management Assignment Help - Predetermined

Question - Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis
of machine-hours. At the beginning of the year, management estimated that 86,000 machine-hours
would be required for the period's estimated level of production. The company also estimated
$163,400 of fixed manufacturing overhead expenses for the coming period and variable
manufacturing overhead of $0.75 per machine-hour.

Required:
1.
Compute the company's predetermined overhead rate. (Round your answer to 2 decimal places. Omit
the "$" sign in your response.)

Predetermined overhead rate $ per MH

2.
Assume that during the year the company actually works only 62,900 machine-hours and incurs the
following costs in the manufacturin ...Read More g overhead and work in process accounts. Compute the amount of
overhead cost that would be applied to work in process for the year, and make the entry in your t-
accounts given below: (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in
your response.)

Manufacturing Overhead

(Utilities) 19,000
(Insurance) 11,000
(Maintenance) 39,000
(Indirect materials) 9,000
(Indirect labor) 68,000
(Depreciation) 45,000
Balance



Work in Process

(Direct materials) 531,000
(Direct labor) 86,000
(Overhead)

3-a.
Compute the amount of underapplied or overapplied overhead for the year, and show the balance in
your manufacturing overhead T-account. (Input the amount as a positive value. Round your
intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)

manufacturing overhead $

3-b.
Prepare a journal entry to close out the balance in this account to cost of goods sold. (Round your
intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)

General Journal Debit Credit ...Read Less

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