Question: Assume over/under applies to ending inventory
|
hours= Basis for POHR |
|
| Capacity/hrs. |
10,500 |
|
| Budget/Hrs |
9,600 |
basis for POHR |
| Budgeted overhead spending $s |
82,560 |
|
| Actual/Hrs |
9,300 |
|
| Ending is before over/under applied |
Raw
Materials |
WIP |
FG |
Total |
Overhead |
| Beginning Inventory $s |
125,000
|
44,000 |
189,000 |
358,000 |
|
| Total Ending Inventory $s |
131,000 |
39,000 |
175,000 |
345,000 |
|
| Overhead in inventory |
|
11,000 |
69,840 |
80,840 |
|
| Actual Period Spending |
|
| Purchased material to Raw Matls. |
175,000 |
| Direct labor spending |
18,000 |
| Overhead spending |
89,000 |
[A] What is POHR & what is over/under applied using Actual spending, actual production & budget hrs. based POHR.
[B] Actual Cost of goods manufactured using budget overhead rate as POHR before applying over/under applied overhead.
[C]Based on Ending inventory $s, inventory is to be adjusted, show adjustment to inventory for over/under applied overhead using budgeted POHR.
[D] What is Cost of goods manufactured using Capacity overhead rate as POHR before applying over/under applied overhead.
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