Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000.
The following information pertains to December of the current year:
December production activity:
Actual manufacturing overhead cost incurred in December was $61,000.
Required:

Question

Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000.
The following information pertains to December of the current year:
  December production activity:
  Actual manufacturing overhead cost incurred in December was $61,000.
Required:

Quizplus · Accepted Answer

The Answer of Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000.
The following information pertains to December of the current year:
  December production activity:
  Actual manufacturing overhead cost incurred in December was $61,000.
Required:

Reed Incorporated Uses a Job-Order Costing System and a Predetermined