Question: Calculating applied overhead Avery, Inc., estimates manufacturing overhead costs for the 2012 accounting period as follows. The company uses a predetermined overhead rate based on

Calculating applied overhead Avery, Inc., estimates manufacturing overhead costs for the 2012 accounting period as follows.

The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in 2012 were 200,000 and for machines were 125,000.
Required
a. Calculate the predetermined overhead rate.
b. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the 2012 period if actual machine hours were 140,000.

Equipment depreciation Supplies Materials handling Property taxes Production setup $192,000 21,000 34,000 15,000 21,000 45,000 40,000 132,000 Rent Maintenance Supervisory salaries

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