Managerial Accounting
Managerial Accounting
1st Edition
ISBN: 9780137024872
Author: Datar, Srikant M./
Publisher: Pearson College Div
Question
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Chapter 4, Problem 28P

1.

To determine

Calculate the manufacturing overhead rate for the year 2012.

2.

To determine

Calculate the under or over allocated manufacturing overhead and dispose that amount using the following method:

  1. (a) By using the write off to cost of goods sold
  2. (b) Proration based on the overhead allocate in 2012.

3.

To determine

Indicate the method that would be preferred in requirement 2.

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