1- Predetermined Overhead rate . Please writ the formula 2- Under -applied Overhead . please write...

1- Predetermined Overhead rate . Please writ the formula
2- Under -applied Overhead . please write the entry
3- Over-applied Overhead. please write the entry
4- What is the difference between Applied manufacturing overhead and Actual manufacturing overhead

Solutions

Expert Solution

1- Predetermined Overhead rate . Please writ the formula

Answer = Predetermined overhead rate = Estimated manufacturing overhead cost / Estimated total units in the allocation base

2- Under -applied Overhead . please write the entry

Answer =

General Journal	Debit	Credit
Cost of Goods sold	XX
Manufacturing Overhead		XX

3- Over-applied Overhead. please write the entry

Answer =

General Journal	Debit	Credit
Manufacturing Overhead	XX
Cost of Goods sold		XX

4- What is the difference between Applied manufacturing overhead and Actual manufacturing overhead

Answer = The actual overhead refers to the indirect manufacturing costs actually occurring. The applied overhead refers to the indirect manufacturing costs that have been assigned to the goods manufactured. Manufacturing overhead is usually applied, assigned, or allocated by using a predetermined annual overhead rate. The primary difference between applied manufacturing overhead and budgeted manufacturing overhead is that applied manufacturing overhead is calculated during and after a certain period, while budgeted manufacturing overhead is calculated before a certain period in order to financially plan for the period.

ekkarill92 answered 1 year ago

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