Q 6.26: Howard Incorporated is determining ending inventory. In the inventory process, Howard inadvertently miscategorized a $6,
1 answer:
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Answer:
(a) Plant wide predetermined overhead rate:
= 30
Manufacturing overhead applied Job A:
= Total direct labor hours × Plant wide predetermined overhead rate
= 15 × 30
= 450
Manufacturing overhead applied Job A:
= Total direct labor hours × Plant wide predetermined overhead rate
= 9 × 30
= 270
(b) Departmental predetermined overhead rates:
= 30
= 1.2
Manufacturing overhead applied Job A:
= (Machining machine hours × 30) + (Assembly direct labor hours × 1.2)
= (11 × 30) + (10 × 1.2)
= 330 + 12
= 342
Manufacturing overhead applied Job B:
= (Machining machine hours × 30) + (Assembly direct labor hours × 1.2)
= (12 × 30) + (5 × 1.2)
= 360 + 6
= 366