Managerial Accounting: E3-12 Kody Corporation uses a job-order costing system

Managerial Accounting
E3-12 Computing predetermined overhead rate and job costs
Kody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 150,000
Fixed manufacturing overhead cost 750,000
Variable manufacturing cost per machine-hour $4.00

Required:
1. Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)
2. During the year Job 500 was started and completed. The following information was available with respect to this job:
Direct materials requisitioned 350
Direct labor cost 230
Machine-hours used 30
Compute the total manufacturing cost assigned to Job 500.
3. During the year the company worked a total 147,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,325,000. What is the amount of underapplied or overapplied overhead for the year? If this amount were closed out entirely to Cost of Goods Sold, would the journal entry increase or decrease net operating income?
sellfy