Kody corporation uses a job-order costing system

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Reference no: EM13336136

Kody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 153,000
Fixed manufacturing overhead cost $ 651,000
Variable manufacturing overhead cost per machine-hour $ 4.20

Required:
1. Compute the predetermined overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. During the year Job 500 was started and completed. The following information was available with respect to this job:

Direct materials requisitioned $ 370
Direct labor cost $ 280
Machine-hours used 35

Compute the total manufacturing cost assigned to Job 500. (Round your intermediate calculations and final answer to 2 decimal places.)

3-a. During the year the company worked a total of 145,300 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,231,285. What is the amount of underapplied or overapplied overhead for the year? (Round your intermediate calculations to 2 decimal places.)

3-b. If this amount were closed out entirely to Cost of Goods Sold, would net operating income increase or decrease?
Increase
Decrease
rev: 09_20_2013_QC_35819, 11_15_2013_QC_39297, 11_19_2013_QC_39297

Reference no: EM13336136

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