Essay
Lynch Audio produces stereo components for a major automotive stereo manufacturer.It currently uses the machine hour method of applying factory overhead to production.Information for the previous year follows: During the year,Lynch produced a new product,Super Tweeters,which involved $27,000 of material,3,100 direct labor hours and 4,500 machine hours.
a.Compute the predetermined factory overhead rate.
b.Compute the amount of under- or overapplied factory overhead.
c.Determine the cost of the Super Tweeter job.
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