Pioria Products Assigns Overhead to Specific Jobs Based on Machine

question 53

Essay

Pioria Products assigns overhead to specific jobs based on machine hours.At the beginning of the current year,estimated overhead costs were $2 150 000 and estimated machine hours were 500 000.By the end of the year,actual overhead costs were calculated to be $1 900 000 and actual machine hours were 475 000.
Required:
A. Calculate the predetermined overhead rate.
B. How much overhead would be applied to a particular job that required 315 machine hours?
C. How much total overhead was applied during the year?
D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

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Definitions:

Coefficient Of Determination

A statistical measure, often denoted as R^2, that represents the proportion of the variance in the dependent variable that is predictable from the independent variables in a regression model.

Stepwise Regression

An approach to developing regression models where the identification of forecasting variables is performed automatically.

Independent Variables

Variables that are manipulated or changed in an experiment to observe their effect on dependent variables.

Adjusted Coefficient

A modified version of a coefficient that accounts for the complexity of the model or for variables not included in the model.