The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year:
The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine-hour; a total of 6,000 machine-hours were recorded for the year.
Required:
a. Compute the amount of underapplied or overapplied overhead cost for the year just ended.
b. Prepare a schedule of cost of goods manufactured for the year.

Question

The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year:  
The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine-hour; a total of 6,000 machine-hours were recorded for the year.
Required:
a. Compute the amount of underapplied or overapplied overhead cost for the year just ended.
b. Prepare a schedule of cost of goods manufactured for the year.

Quizplus · Accepted Answer

The Answer of The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year:  
The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine-hour; a total of 6,000 machine-hours were recorded for the year.
Required:
a. Compute the amount of underapplied or overapplied overhead cost for the year just ended.
b. Prepare a schedule of cost of goods manufactured for the year.

The Following Cost Data Relate to the Manufacturing Activities of the Kamas