ACCT 2230 Lecture 3: Chapter 3 solutions
30 Sep 2015
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The predetermined overhead rate is computed as follows: Estimated total direct labour hours (dlhs) . Overhead is over applied by ,060 (,060 applied versus ,000 actual) Exercise 3-6 (15 minutes: actual manufacturing overhead costs Manufacturing overhead cost applied to work in process Manufacturing overhead overapplied : because manufacturing overhead is overapplied, the cost of goods sold would decrease by ,100 and the gross margin would increase by. Raw materials : work in process Accumulated depreciation h. work in process 110,000. Estimated total amount of the allocation base 45,000 mhs. 50,000 actual mhs 2. 20 per mh = 110,000 overhead applied. 308,000 (j: manufacturing overhead is underapplied by 13,000 for the year. The entry to close this balance to cost of goods sold would be: Cost of goods sold ( 308,000 + 13,000) You may wish to have the student prepare a statement of cost of goods manufactured as follows:
