Q.4. FENERBAHCE Company expects to incur $600,000 as overhead costs for the coming year-$200,000 in Department...

 

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Q.4. FENERBAHCE Company expects to incur $600,000 as overhead costs for the coming year-$200,000 in Department A and $400,000 in Department B. Predetermined overhead rates will be based on machine hours and direct labour hours for Department A and Department B, respectively. The Department A expects to use 20,000 machine hours, and the Department B plans to utilize 40,000 hours of direct labor for the year. At the end of the year, Department A used 22,000 machine hours while Department B needed only 35,000 direct labour hours. In addition, Actual overhead costs incurred by the departments are $218,000 for Department A and $353,000 for Department B. Required: i)Please calculate predetermined overhead rates for the departments (10p). ii)Please calculate the amounts of underapplied or overapplied overhead costs for the departments (10p) Q.4. FENERBAHCE Company expects to incur $600,000 as overhead costs for the coming year-$200,000 in Department A and $400,000 in Department B. Predetermined overhead rates will be based on machine hours and direct labour hours for Department A and Department B, respectively. The Department A expects to use 20,000 machine hours, and the Department B plans to utilize 40,000 hours of direct labor for the year. At the end of the year, Department A used 22,000 machine hours while Department B needed only 35,000 direct labour hours. In addition, Actual overhead costs incurred by the departments are $218,000 for Department A and $353,000 for Department B. Required: i)Please calculate predetermined overhead rates for the departments (10p). ii)Please calculate the amounts of underapplied or overapplied overhead costs for the departments (10p)

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i Calculation of predetermined overhead rates for the departmentsrn Predetermined overhead rate D... View the full answer