P20-4B Super-Tex produces specialized textiles. The company allocates manufacturing overhead based on the machine hours each job

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P20-4B Super-Tex produces specialized textiles. The company allocates manufacturing overhead based on the machine hours each job uses. Super-Tex reports the following cost data for 20X5: Budget Actual Direct labor hours. 6.000 hours 5,000 hours Machine hours 6.900 hours Depreciation on salespersons' autos $20,000 6.000 hours $20,000 Indirect materials. 40,000 42.000 Depreciation on trucks used to deliver textiles. to customers..... 12,000 11,000 Depreciation on plant and equipment.. 50,000 55,000 Indirect manufacturing labor 35,000 38,000 Customer service hotline... 17,000 20,000 Plant utilities. 13,000 15,000 Direct labor cost. 60,000 80,000 Required 1. Compute the predetermined manufacturing overhead rate. 2. Post actual and allocated manufacturing overhead to the Manufacturing Overhead T- account. 3. Close the under- or overallocated overhead to cost of goods sold. 4. How can managers use accounting information to help control manufacturing overhead costs?

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Accounting

ISBN: 9780130906991

5th Edition

Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones

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