The case study in Unit V (Case Study 9-2: IPX Packaging) is located on page 445 in your textbook. Read the case and

utilize the data included in the case to answer the following questions.

 

1. Calculate the overhead rate set at the beginning of the year.

2. Calculate the amount of over/underabsorbed overhead for the year.

3. The company’s policy is to write off any over/underabsorbed overhead to cost of goods sold. Will net income

rise or fall this year when the over/underabsorbed overhead is written off to cost of goods sold?

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