Reference no: EM131676777
Question - Assume that the following predictions were made for 2018 for one of the plants of Milliken & Company:
Total manufacturing overhead for the year$ 20,000,000Total machine hours for the year 1,600,000
Actual results for February 2018 were as follows:
Manufacturing overhead$ 2,205,000Machine hours 205,000
(a) Determine the 2018 predetermined overhead rate per machine hour. (Enter answer using two decimal places.)
(b) Using the predetermined overhead rate per machine hour, determine the manufacturing overhead applied to Work-in-Process during February.
(c) As of February 1, actual overhead was underapplied by $400,000. Determine the cumulative amount of any overapplied or underapplied overhead at the end of February.
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