Chloe Corp

question 46

Essay

Chloe Corp.uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours.For the upcoming year,Chloe Corp.estimated total manufacturing overhead cost at $480,000 and total direct labor hours of 40,000.During the year actual manufacturing overhead incurred was $462,500 and 41,000 direct labor hours were used.
a.Calculate the predetermined overhead rate.
b.Calculate how much manufacturing overhead will be applied to production.
c.Is overhead over- or underapplied? By how much?
d.What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?

---

Definitions:

Serum Electrolytes

Minerals found in the blood, such as sodium, potassium, and chloride, that are vital for maintaining fluid balance, muscle contractions, and neural activity.

Gravity Flow

The movement of liquid in response to gravity without the use of pumps or other mechanical aids.

Infusion Rate

The speed at which a fluid (usually containing medication or nutrition) is administered to a patient intravenously.

Partial Compensation

Adjustment mechanism by the body or a system to partially correct an imbalance or change, but not completely restore to normal.