Company Fx Printing and Design has two departments; Designing and Printingdepartment. The estimated costs for both departments is shown as follows:PrintingDepartmentRM480,000CostTotalDesigningDepartmentRM360,000OverheadRM840,000Direct labor hoursMachine hoursThe actual cost for Company Fx Printing and Design for the month of November2015 is shown as follows;880,000360,000480,000400,000360,000PrintingDepartmentRM36,740CostDesigningDepartmentRM36,00040,000TotalOverheadDirect labor hoursMachine hoursRM72,74076,00028,00036,00028,000The company policy for overhead cost based on direct labor hours for Designing Department andmachine hours for Printing Department.1. Calculate the predetermined overhead rate for both departments using plantwide overhead rate.(Assume company use machine hours as the basis).2. Calculate the predetermined overhead rate for both departments using departmental overhead rate.3. How much the over/under-applied of overhead for each department?

Name: Company Fx Printing and Design has two departments; Designing and Pri
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Description: Company Fx Printing and Design has two departments; Designing and Printingdepartment. The estimated costs for both departments is shown as follows:PrintingDepartmentRM480,000CostTotalDesigningDepartmentRM360,000OverheadRM840,000Direct labor hoursMac

Predetermined overhead rate = Total estimated overhead/Total machine hours

Answered: predetermined overhead rate

Business

Accounting

predetermined overhead rate

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter16: Job Order Costing

Section: Chapter Questions

Problem 2CMA: John Sheng, a cost accountant at Starlet Company, is developing departmental factory overhead...

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