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Ber [7]
3 years ago
9

Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated

annual overhead cost for each activity is $202,800, $364,500, and $88,000, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,600, machine hours 24,300, and number of inspections 1,600. Compute the overhead rate for each activity.
Machine setups $ per setup
Machining $ per machine hour
Inspections $ per inspection
Business
1 answer:
Ghella [55]3 years ago
5 0

Answer and Explanation:

The computation of the overhead rate for each activity is as follows;

Overhead rate is

= Respective overhead cost ÷ Respective activity

For Machine setups

= ($202,800 ÷ 2,600 setups)

= $78 per setup

For Machining

= ($364,500 ÷ 24,300 machine hours)

= $15 per machine hour

For Inspection

= ($88,000 ÷ 1,600 inspections)

= $55 per inspection

In this way it is calculated

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When Sydney borrowed $8000 from her parents, they made her give them some collateral. What would be the MOST logical thing for S
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Sales revenue$ 4,000Purchases of direct materials$ 400Direct labor$ 450Manufacturing overhead$ 620Operating expenses$ 650Beginni
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Answer:

A) $1,450

Explanation:

beginning finished goods + COGM = ending finished goods + COGS

to know COGS we need cost of goods manufactured

COGM = beginning WIP + cost added - ending WIP

to knwo COGM we need to know cost added

cost added = labor + materials + overehead

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and now we go backwards in the loop to fill the blank and solve for COGS

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