Question: Callen Corp uses a normal job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year,

Callen Corp uses a normal job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Callen Corp estimated total manufacturing overhead cost at $270,000 and total machine hours of 45,000. During the year actual manufacturing overhead incurred was $258,750 and 46,600 machine hours were used

. a. Calculate the predetermined overhead rate.

b. Calculate how much manufacturing overhead will be applied to production.

c. Is overhead over- or underapplied? By how much?

d. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?

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e. What do you know about your ethnic background?

a. What values did your parents or guardians attempt to instill in you?

b. Why were these values considered important?