3-10 The Manufacturing Overhead account is
credited when overhead cost is applied to Work in
Manufacturing overhead:
Process. Generally, the amount of overhead ap-
$12,000 × 125%... 15,000
plied will not be the same as the amount of actual
Total manufacturing cost... $37,000
cost incurred, since the predetermined overhead
Unit product cost:
rate is based on estimates.
$37,000 ÷ 1,000 units ... $37
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