Reference no: EM132870837
Problem - Petters Inc. uses labor hours to assign overhead cost. The following data are for the month of November:
Expected manufacturing overhead $500,000
Overhead assignment base labor hours
Expected labor hours 10,000
Manufacturing overhead incurred $620,000
Actual labor hours 11,000
The ending balances (before adjusting for the overhead variance) are as follows:
Cost of goods sold $200,000
Finished goods $200,000
Work-in-process $100,000
Required -
A. Compute the predetermined manufacturing overhead rate for the month of November.
B. Compute the under- or over applied manufacturing overhead (overhead variance) for Petters Inc. in the month of November.
C. If underapplied or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances), what is the balance of ?nished good after adjustment?