Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Transcribed Image Text:The MAN Company's records for May contained the following
information.
Actual direct labor-hours
Actual direct labor cost
12,300 hours
$ 47,000
Direct material purchased 16,000
Direct material used
14,000
Cost of goods sold
100,000
Underapplied overhead
6,400
Ending inventories:
$8,500
10,000
60,000
Raw materials
Work-in-process
Finished goods
The company uses a predetermined overhead rate of $7.30 per direct
labor hour to apply manufacturing overhead to jobs. What is the actual
overhead cost incurred during the month?
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