Vakos Manufacturers uses the traditional approach in allocating manufacturing overheads basehours. They have provided you with the following information:EFor year ended 30 December 2022:Purchases - direct materialsCost per labour hourManufacturing Overhead rateActual Labour hoursActual Machine hoursa)b)c)Actual manufacturing overheadsSelling and admin expensesInterest paidSalesTax rateInventories at year end:MaterialsWork in ProcessFinished Goods205,000615/mach.hr20,000hrs30,000hrs440,000400,00040,0002,000,00030%20212022(E)(E)5,00010,00020,00030,00025,000 15,000Compute the total Applied Manufacturing Overhead costs using the rate.Compute the MO Overhead cost variance and state whether over orunderapplied and how the variance would be treated.Prepare a Statement of Goods Manufactured for year ended 31 December 2022 usingActual M.O costs. Prepare the Income Statement for year ended 30 December 2022.

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Description: Vakos Manufacturers uses the traditional approach in allocating manufacturing overheads basehours. They have provided you with the following information:EFor year ended 30 December 2022:Purchases - direct materialsCost per labour hourManufacturing O

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Vakos Manufacturers uses the traditional approach in allocating manufacturing overheads bo hours. They have provided you with the following information: € For year ended 30 December 2022: Purchases - direct materials Cost per labour hour Manufacturing Overhead rate Actual Labour hours Actual Machine hours Actual manufacturing overheads Selling and admin expenses Interest paid Sales Tax rate 205,000 6 15/mach.hr 20,000hrs 30,000hrs 440,000 400,000 40,000 2,000,000 30%

Vakos Manufacturers uses the traditional approach in allocating manufacturing overheads bo hours. They have provided you with the following information: € For year ended 30 December 2022: Purchases - direct materials Cost per labour hour Manufacturing Overhead rate Actual Labour hours Actual Machine hours Actual manufacturing overheads Selling and admin expenses Interest paid Sales Tax rate 205,000 6 15/mach.hr 20,000hrs 30,000hrs 440,000 400,000 40,000 2,000,000 30%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...

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