Scanlon Company Has a Job-Order Costing System and Applies Manufacturing $\begin{array} { l r } \text { Machine hours } & 95,000 \\\text { Manufacturing overhead cost } & \$ 1,710,000\end{array}$

question 79

Essay

Scanlon Company has a job-order costing system and applies manufacturing overhead cost to products on the basis of machine hours.The following estimates were used in preparing the predetermined overhead rate for the most recent year:
$\begin{array} { l r } \text { Machine hours } & 95,000 \\\text { Manufacturing overhead cost } & \$ 1,710,000\end{array}$
During the most recent year, a severe recession in the company's industry caused the curtailment of production and a buildup of inventory in the company's warehouses. The company's cost records revealed the following actual cost and operating data for the year:
$\begin{array} { l r } \text { Machine hours } & 75,000 \\\text { Manufacturing overhead cost } &\$ 1,687,500\end{array}$

$\text { Amount of applied overhead in inventories at year-end: }$
$\begin{array} { l r } \text { Work in process } & \$ 337,500\\\text { Finished goods} &253,125\end{array}$
$\text { Amount of applied overhead in }$
$\text { cost of goods sold for the year } 759.375$
Required:
(a.) Compute the company's predetermined overhead rate for the year and the amount of under- or overapplied overhead for the year.
(b.) Determine the difference between net income for the year if the under- or overapplied overhead is allocated to the appropriate accounts rather than closed out directly to Cost of Goods Sold.

Appreciate the contributions of significant figures and milestones in the history and development of psychology.

Understand the principles of causality and the research designs capable of inferring cause-and-effect relationships.

Acknowledge the role of skepticism and critical thinking in the scientific process and research validity.

Understand the key milestones and terms in early language development.

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Definitions:

Nuisance

An act, condition, or thing that is considered an inconvenience or annoyance, and can sometimes give rise to a legal claim.

Bank's Carelessness

Negligent or inattentive actions by a banking institution that lead to loss or damage for a customer.

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The process of transferring blood or a blood-based product from one person into the circulatory system of another.