Merger Manufacturing uses direct labor cost as the allocation base for applying MOH to WIP. The budgeted direct labor cost for the year $1,000,000. The budgeted manufacturing overhead was $800,000. The actual direct labor cost for the year was $1,100,000. The actual manufacturing overhead was $825,000. A. What was Merger's predetermined manufacturing overhead rate per direct labor dollars? B. How much MOH was applied to WIP during the year?

Merger Manufacturing uses direct labor cost as the allocation base for applying MOH to WIP. The budgeted direct labor cost for the year $1,000,000. The budgeted manufacturing overhead was $800,000. The actual direct labor cost for the year was $1,100,000. The actual manufacturing overhead was $825,000. A. What was Merger's predetermined manufacturing overhead rate per direct labor dollars? B. How much MOH was applied to WIP during the year?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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