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naf radiator company uses a normal costing system with a single manufacturing overhe 3614431

Naf Radiator Company uses a normal costing system with a single manufacturing overhead (MOH) cost pool and machine hours (MH) as the cost allocation base. The following data are for 2013:,Budgeted manufacturing overhead (MOH) ………….. $4,800,000,Overhead allocation base ……………… machine hours (MH),Budgeted machine hours (MH) ………………….. 80,000,Manufacturing overhead (MOH) incurred ………….. $4,900,000,Actual machine hours (MH) ………………………….. 75,000,Machine-hours data and the ending balances (before proration of underallocated or overallocated overhead) are as follows:,REQUIRED,1. Compute the budgeted manufacturing overhead rate for 2013.,2. Compute the underallocated or overallocated manufacturing overhead of Naf Radiator in 2013. Dispose of this underallocated or overallocated amount using:,a. Write-off to Cost of Goods Sold.,b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold.,c. Proration based on the allocated overhead amount (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold.,3. Which method do you prefer in requirement 2? Explain.

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