Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The company uses a predetermined overhead rate of $28 per machine-hour to apply overhead cost to jobs. A total of 21,600 machine-hours were used during the year.
We don't have enough information to calculate the over/under applied overhead and a schedule cost of goods manufactured. But, I can provide with the formulas to calculate 1 and 2:
1) Based on the predetermined overhead rate and the actual machine-hours for the period you can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
With the allocated overhead you can calculate the over/under allocation:
Over/under allocation= real MOH - allocated MOH
If real MOH < allocated MOH= Overhead was overallocated.
2) cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
