true or false Deflation can be differentiated from disinflation in that the deflation rate is always negative while the disinfla
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Answer:
a) $12
b) 804,000 allocate overhead
c) actual overhead 657,000
the overhead was overapplied for 147,000 dollars
d) the job were overcosted as the manufacturing cost face by the firm weren't as high as expected.
Explanation:
the expected overhead wil be distribute over the cost driver which, in this case, is machine hours:
840,000 / 70,000 = $12
each machine hours will generate 12 dollar of overhead
b) applied overhead:
67,000 hours x $12 overheead per hour = 804,000
c) actial overhead
Depreciation on manufacturing property,
plant, and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Property taxes on plant . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Plant janitor’s wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000
Total ovehead 657,000
We compare with the allcoated
657,000 - 804,00 = -147,000
there is