Reference no: EM131844257

Question: Assume over/under applies to ending inventory

	hours= Basis for POHR
Capacity/hrs.	10,500
Budget/Hrs	9,600	basis for POHR
Budgeted overhead spending $s	82,560
Actual/Hrs	9,300

Ending is  before over/under applied	Raw Materials	WIP	FG	Total	Overhead
Beginning Inventory $s	125,000	44,000	189,000	358,000
Total Ending Inventory $s	131,000	39,000	175,000	345,000
Overhead in inventory		11,000	69,840	80,840

Actual Period Spending
Purchased material to Raw Matls.	175,000
Direct labor spending	18,000
Overhead spending	89,000

[A] What is POHR & what is over/under applied using Actual spending, actual production & budget hrs. based POHR.

[B] Actual Cost of goods manufactured using budget overhead rate as POHR before applying over/under applied overhead.

[C]Based on Ending inventory $s, inventory is to be adjusted, show adjustment to inventory for over/under applied overhead using budgeted POHR.

[D] What is Cost of goods manufactured using Capacity overhead rate as POHR before applying over/under applied overhead.

Information related to above question is enclosed below:

Attachment:- CopyofCh.3ExcelwHWCanvas.rar