The Following Data Are Available for Convoy Trucks Required:
A

question 34

Essay

The following data are available for Convoy Trucks:
$\begin{array}{llcc} \text { Estimated machine hours} &\text { 40, 000 hours} \\ \text { Actual machine hours } &\text { 5, 000 hours} \\ \text { Estimated manufacturing overhead } &\$ 125,000\\ \text { Actual manufacturing overhead } &13,000\\\end{array}$
Required:
a.Compute the predetermined overhead rate assuming the rate is based on machine hours.
b.Prepare the journal entry to record the applied overhead.

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Definitions:

SSR

In statistics, SSR stands for Sum of Squares due to Regression, which measures the variation explained by the regression line.

SSE

A metric indicating the variance between an estimated model's predictions and the actual data, calculated as the sum of squares of errors.

Estimated Regression Equation

A mathematical representation derived from regression analysis that estimates the relationship between variables.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period of time.