A company uses job-order costing with manufacturing overhead (MOH) applied on the basis of machine hours (MHS). In the past, the company's pre- determined overhead rate (POHR) has fluctuated from period to period due primarily to differences in the expected usage of their machine. For this period, the machine has a capacity of 450 MHs, but based on anticipated production, only 375 MHs are expected to be required. The company's MOH is relatively fixed, estimated at $11,250 for both levels of MHs. At the end of the period, actual production used 386 MHs and total actual MOH amounted to $10,500. How much less MOH would be applied during the month using capacity MHs rather than the traditional method? Multiple Choice

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A company uses job-order costing with manufacturing overhead (MOH) applied on the basis of machine hours (MHS). In the past, the company's pre-
determined overhead rate (POHR) has fluctuated from period to period due primarily to differences in the expected usage of their machine.
For this period, the machine has a capacity of 450 MHs, but based on anticipated production, only 375 MHs are expected to be required. The
company's MOH is relatively fixed, estimated at $11,250 for both levels of MHs. At the end of the period, actual production used 386 MHs and total
actual MOH amounted to $10,500.
How much less MOH would be applied during the month using capacity MHs rather than the traditional method?
Multiple Choice
$772 less applied to MOH using capacity.
None of the answers are correct
$1358 less applied to MOH using capacity.
$1,930 less applied to MOH using capacity
$1,544 less applied to MOH using capacity
Transcribed Image Text:A company uses job-order costing with manufacturing overhead (MOH) applied on the basis of machine hours (MHS). In the past, the company's pre- determined overhead rate (POHR) has fluctuated from period to period due primarily to differences in the expected usage of their machine. For this period, the machine has a capacity of 450 MHs, but based on anticipated production, only 375 MHs are expected to be required. The company's MOH is relatively fixed, estimated at $11,250 for both levels of MHs. At the end of the period, actual production used 386 MHs and total actual MOH amounted to $10,500. How much less MOH would be applied during the month using capacity MHs rather than the traditional method? Multiple Choice $772 less applied to MOH using capacity. None of the answers are correct $1358 less applied to MOH using capacity. $1,930 less applied to MOH using capacity $1,544 less applied to MOH using capacity
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