Question
4,500 meany produces chairs. There are 2 production departments which have following allocation bases for September. manuracachine-hours in Dopartment P and 7,500 cirect manuracturing labor
4,500 meany produces chairs. There are 2 production departments which have following allocation bases for September. manuracachine-hours in Dopartment P and 7,500 cirect manuracturing labor hours in Depariment Q. The budgetee the two departments were as follows:
the two departments oads for the month were 565,250 and 567, 780, respectively. For Job A, the actual costs incurred in
Direct materials purchased on account
Direct materials used
Direct manufacturing labor
Indirect manufacturing labor
Indirect materials used
Lease on equipment
Utilities
Department P
$125,000
42,500
57,500
4,500
6,500
2,350
1,200
Department Q
$155,500
18,500
54,500
1240
5.750
1,750
1,050
Job A incurred 750 machine-hours in Department P and 1200 manufacturing labor-hours in Department Q. The company uses a budgeted overhead rate for applying overhead to production.
Required:
a. Determine the budgeted manufacturing overhead rate for each department.
overheads underallocated or overallocated?
b. How much overheads were allocated and actually incurred in both departments? For September were manufacturing
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