Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions