Question
A company uses normal costing.It allocates manufacturing overhead using a predetermined rate based on the number of direct labor hours incurred.The following data is available
A company uses normal costing. It allocates manufacturing overhead using a predetermined rate based on the number of direct labor hours incurred. The following data is available for 2019:
Budgeted manufacturing overhead costs = $2,000,000
Budgeted direct labor hours = 200,000
Actual manufacturing overhead costs = $2,100,000
Actual direct labor hours = 190,000
Based on this information, would manufacturing overhead be over- or under-allocated?
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To determine if manufacturing overhead is over or underallocated we need to compare the amount of ov...
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
9th edition
125956455X, 978-1259564550
