Fenderson Incorporated Makes a Single Product--A Cooling Coil Used in Commercial

question 13

Essay

Fenderson Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The company incurred a total of $370,077 in manufacturing overhead cost during the year.
Required:
a.Compute the variable component of the company's predetermined overhead rate.
b.Compute the fixed component of the company's predetermined overhead rate.
c.Compute the company's predetermined overhead rate.
d.Determine whether overhead was underapplied or overapplied for the year and by how much.

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Definitions:

Preexisting Duty

An obligation that a party is already legally bound to perform, which cannot serve as consideration for a new contract.

Bilateral Contract

A type of agreement involving two parties where each side promises to fulfill certain obligations to the other; a mutual exchange of promises.

Unilateral Contract

A type of contract in which only one party makes a promise or commitment in exchange for an act performed by the other party.

Illusory

Something that is misleadingly attractive or gives a false impression of reality.