Reference no: EM132523980

Darrin Products applies manufacturing overhead based on machine hours. Budgeted machine hours for the current period were anticipated to be 120,000; however, a lengthy strike resulted in actual machine hours being worked of only 90,000. Budgeted and actual manufacturing overhead figures for the year were $4,800,000 and $4,000,000, respectively.

Question 1. The predetermined overhead rate for Darrin Products is:

A. $53.33 per machine hour

B. $40 per machine hour

C. $13.3 per machine hour

D. $33.3 per machine hour

Question 2. The manufacturing overhead for Darrin Products is:

A. underapplied by $800,000.

B. overapplied by $800,000.

C. underapplied by $400,000.

D. overapplied by $400,000.

Question 3. Bases on the results of the previous requirement, we close the difference on manufacturing overhead by:

A. debiting MOVH by $800,000 and crediting COGS by the same amount.

B. crediting MOVH by $800,000 and debiting COGS by the same amount.

C. debiting MOVH by $400,000 and crediting COGS by the same amount.

D. crediting MOVH by $400,000 and debiting COGS by the same amount.