Blakely charges manufacturing overhead to products by using…
Blakely charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year: Budgeted manufacturing overhead: $960,000Actual manufacturing overhead: $880,000Budgeted machine hours: 40,000Actual machine hours: 32,000 Overhead applied to production totaled:
Read DetailsFlagler, Inc. disposes of under or over-applied overhead at…
Flagler, Inc. disposes of under or over-applied overhead at year-end as an adjustment to cost of goods sold. Prior to the disposition of under or over-applied overhead, the firm reported cost of goods sold of $590,000 in a year when manufacturing overhead was under-applied by $15,000. If sales revenue totaled $1,400,000, determine (1) Flagler’s adjusted cost of goods sold and (2) gross margin after dispositioning the over or under applied overhead.
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