Blueberry Corp.uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours.For the upcoming year,Blueberry Corp.estimated total manufacturing overhead cost at $270,000 and total machine hours of 45,000.During the year actual manufacturing overhead incurred was $258,750 and 46,600 machine hours were used.
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?

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The Answer of Blueberry Corp.uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours.For the upcoming year,Blueberry Corp.estimated total manufacturing overhead cost at $270,000 and total machine hours of 45,000.During the year actual manufacturing overhead incurred was $258,750 and 46,600 machine hours were used.
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?