A company uses machine hours (MHs) to allocate thelr manufactuing overhead cost with capacity-based method. At the end o
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A company uses machine hours (MHs) to allocate thelr manufactuing overhead cost with capacity-based method. At the end o
company uses machine hours (MHs) to allocate thelr manufactuing overhead cost with capacity-based method. At the end of year, the company closes the underlover-applied manufacuturing overhead entirely to cost of goods sold. The company finds that it needs to debit cost of goods sold by $78,200 for this adjustment. Actual machine hours 14,000 MHS Estimated machine hours for planned production 14400 MHS Estimated machine hours at capacity MHS Estimated manufacturing overhead at capacity $76,998 Actual manufacturing overhead $422,600 Q. What is the amount of estimated machine hours (MHS) at capacity? ANS MHS
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