Accounting for manufacturing overhead. (15 minutes) Consider the following selected cost data for Schwarzmetal, GmbH, for 1999. lo1

Schwarzmetal’s job-costing system has a single manufacturing overhead cost pool (allocated using a budgeted rate based on actual machinehours). Any amount of under- or overallocation is immediately written off to Cost of Goods Sold.
REQUIRED 1. Calculate the budgeted manufacturing overhead rate.
2. Journalise the allocation of manufacturing overhead.
3. Calculate the amount of under- or overallocation of manufacturing overhead.
Is the amount significant? Journalise the disposition of this amount on the basis of the ending balances in the relevant accounts.

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Budgeted manufacturing overhead Budgeted machine-hours Actual manufacturing overhead Actual machine-hours EUR 7,000,000 200,000 EUR 6,800,000 195,000