Question: Since Stargazers has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Suni
Since Stargazers has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Suni is analyzing: Budgeted MOH cost $422,400 Actual MOH cost $414,720 Budgeted machine hours 96,000 Actual machine hours 108,000 Required a. Determine the actual MOH rate and the budgeted MOH rate Stargazers would have used last year under actual costing and normal costing, respectively. b. Calculate total applied MOH under both actual costing and normal costing for last year. c. How much would Stargazers under- or overapplied MOH costs be if it followed an actual costing system? If it followed a normal costing system? d. What are the key advantages and disadvantages to both of these systems, and what does that mean for Stargazers ability to price its products if it bases its selling price on cost
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