Lynch Audio produces stereo components for a major automotive stereo manufacturer.It currently uses the machine hour method of applying factory overhead to production.Information for the previous year follows: During the year,Lynch produced a new product,Super Tweeters,which involved $27,000 of material,3,100 direct labor hours and 4,500 machine hours.
a.Compute the predetermined factory overhead rate.
b.Compute the amount of under- or overapplied factory overhead.
c.Determine the cost of the Super Tweeter job.

Question

Lynch Audio produces stereo components for a major automotive stereo manufacturer.It currently uses the machine hour method of applying factory overhead to production.Information for the previous year follows:  During the year,Lynch produced a new product,Super Tweeters,which involved $27,000 of material,3,100 direct labor hours and 4,500 machine hours. 
a.Compute the predetermined factory overhead rate.
b.Compute the amount of under- or overapplied factory overhead.
c.Determine the cost of the Super Tweeter job.

Quizplus · Accepted Answer

The Answer of Lynch Audio produces stereo components for a major automotive stereo manufacturer.It currently uses the machine hour method of applying factory overhead to production.Information for the previous year follows:  During the year,Lynch produced a new product,Super Tweeters,which involved $27,000 of material,3,100 direct labor hours and 4,500 machine hours. 
a.Compute the predetermined factory overhead rate.
b.Compute the amount of under- or overapplied factory overhead.
c.Determine the cost of the Super Tweeter job.

Lynch Audio Produces Stereo Components for a Major Automotive Stereo