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Estimated Overhead was $6 million. Estimated Machine hours were 100,000 hrs. Actual Overhead was 3,990,000 and actual machine hours were 68,000 hours. The over or under applied is not material.
Question 1- Is overhead over under applied and by how much?
Question 2- Give the end of the period adjustment to zero out MOH
Question 3- Give the total cost of the machining department if the direct method of allocation is used
Question 4- Give the total cost of the machining department if the step down method of allocation is used
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List and describe five fundamental principles that underpin Code of Ethics for Professional Accountants under APES 110
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Compute the amount of prepaid/accrued pension cost that would be reported on the balance sheet. Clearly indicate whether the amount would be shown as an asset or as a liability.
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