Reference no: EM13566663

The management of Wymer Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 50,400 machine-hours. In addition, capacity is 59,000 machine-hours and the actual level of activity for the year is 53,700 machine-hours. All of the manufacturing overhead is fixed and is $1,645,560 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. A number of jobs were worked on during the year, one of which was Job J44V.

This job required 234 machine-hours. rev: 02-09-2011 1.value: 1.00 points If the company bases its predetermined overhead rate on the estimated amount of the allocation base for the upcoming year the amount of manufacturing overhead charged to the Job J44V is closest to : rev: 02-09-2011 $6,526.46 $7,640.10 $7,170.60 $7,157.27 references 2.value: 1.00 points If the company bases its predetermined overhead rate on the estimated amount of the allocation base for the upcoming year, by how much was manufacturing overhead underapplied or overapplied?rev: 02-09-2011 $107,745 overapplied $147,821 underapplied $147,821 overapplied $107,745 underapplied references 3.value: 1.00 points If the company bases its predetermined overhead rate on capacity, the amount of manufacturing overhead charged to the job J44V is closest to : rev: 02-09-2011 $7,121.53 $6,949.80 $6,526.46 $7,108.29?