1.Why does the FOH per unit decrease at the volume increases?

2.Why do we need to estimate the amount of FOH that should be applied to the finished product?

3.How can we calculate a pre-determined FOH rates?

4.What are the four method of calculating Predetermined Factory Overhead Rates?

(1)

(2)

(3)

(4)

5.Make five JEs when $5,000 of estimated FOH cost would be applied to all jobs worked and the actual FOH costs for the period was $5,500.

(1)

(2)

(3)

(4)

(5)

6.Assume a debit balance of $20,000 (under-applied FOH). The ending balances before adjustment are as follow. Please restate the balances of the WIP, FG, and COGS accounts and make JE to close them.

WIP 10,000 10%

FG 30,000 30%

COGS 60,000 60%

TOTAL 100,000 100%