A review of the records of Mile Limited, a new company, disclosed the following year-end information:...

  

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A review of the records of Mile Limited, a new company, disclosed the following year-end information: Manufacturing Overhead account: Debit balance of $872,000, which included $20,000 of sales commissions. Work in Process account: Included a charges for overhead of $875,000. Cost of Goods Sold account: a year-end debit balance of $3,680,000. This amount was computed prior to any year-end adjustment for under- or over- applied overhead. Mile applies manufacturing overhead to production by using a predetermined rate of $20 per machine hour. Budgeted overhead for the period was anticipated to be $900,000. Required: a. Determine the actual manufacturing overhead for the year. b. Determine the amount of manufacturing overhead applied to production. c. Is overhead under- or overapplied? By how much? d. Compute the adjusted cost-of-goods-sold figure that should be disclosed on the company's income statement. A review of the records of Mile Limited, a new company, disclosed the following year-end information: Manufacturing Overhead account: Debit balance of $872,000, which included $20,000 of sales commissions. Work in Process account: Included a charges for overhead of $875,000. Cost of Goods Sold account: a year-end debit balance of $3,680,000. This amount was computed prior to any year-end adjustment for under- or over- applied overhead. Mile applies manufacturing overhead to production by using a predetermined rate of $20 per machine hour. Budgeted overhead for the period was anticipated to be $900,000. Required: a. Determine the actual manufacturing overhead for the year. b. Determine the amount of manufacturing overhead applied to production. c. Is overhead under- or overapplied? By how much? d. Compute the adjusted cost-of-goods-sold figure that should be disclosed on the company's income statement.

Answer rating: 100% (QA)

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