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Calculating the Predetermined Overhead Rate, Apply

Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under- and Overapplied OverheadAt the beginning of the year, Han Company estimated the following: Overhead $160,000 Direct labor hours 80,000Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 8,350. By the end of the year, Han showed the following actual amounts: Overhead $166,000 Direct labor hours 79,600Assume that unadjusted Cost of Goods Sold for Han was $176,000.

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