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Castlegar Brewing Company expects to incur $780,000 in manufacturing overhead, 10,800 in direct labour hours and 18,000 in machine hours in 2020. At the end

  1. Castlegar Brewing Company expects to incur $780,000 in manufacturing overhead, 10,800 in direct labour hours and 18,000 in machine hours in 2020. At the end of the year they incurred the following

Direct Labour Cost

$ 456,125

Direct Labour Hours

10,250

Property Taxes on Plant

$ 125,000.00

Sales Salaries

$ 12,000.00

Depreciation on plant & Equipment

$ 450,000.00

Plant Janitor's wages

$ 25,000.00

Delivery Drivers wages

$ 12,000.00

Indirect Materials

$ 194,000.00

Machine Hours

19,250

  1. How much manufacturing overhead was incurred during the year?

  1. Calculate the predetermined manufacturing overhead allocation rate using direct labour hours as an allocation base.

  1. Is manufacturing overhead over or under allocated using this as the base? By how much?

  1. Calculate the predetermined manufacturing overhead allocation rate using machine hours as an allocation base

  1. Is manufacturing overhead over or under allocated using this as the base? By how much?

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