Nilson Co. estimates its predetermined overhead rate annually on the basis of machine-hours. At the beginning...
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Nilson Co. estimates its predetermined overhead rate annually on the basis of machine-hours. At the beginning of the year, it estimated that 90,000 machine hours would be required for the period's estimated level of production. The company also estimated $ 540,000 of manufacturing overhead expenses for the coming period. At the end of January, actual manufacturing overhead for the month was $ 123,000 and its actual machine-hours was 20,000 hours. Required: 1- Compute the company's predetermined overhead rate for the year 2- Compute the manufacturing overhead applied for January Nilson Co. estimates its predetermined overhead rate annually on the basis of machine-hours. At the beginning of the year, it estimated that 90,000 machine hours would be required for the period's estimated level of production. The company also estimated $ 540,000 of manufacturing overhead expenses for the coming period. At the end of January, actual manufacturing overhead for the month was $ 123,000 and its actual machine-hours was 20,000 hours. Required: 1- Compute the company's predetermined overhead rate for the year 2- Compute the manufacturing overhead applied for January
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Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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