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Edwards Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $1,800,000 for the year, and machine usage is estimated at 200,000 hours. In January, $186,000 of overhead costs are incurred and 22,000 machine hours are used. For the remainder of the year, $1,940,000 of additional overhead costs are incurred and 214,000 additional machine hours are worked.
1. Compute the manufacturing overhead rate for the year.
2. What is the amount of over- or underapplied overhead at January 31?
3. What is the amount of over- or underapplied overhead at December 31?
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Edwards Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead...
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