Question
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
- 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 |
- How much manufacturing overhead was incurred during the year?
- Calculate the predetermined manufacturing overhead allocation rate using direct labour hours as an allocation base.
- Is manufacturing overhead over or under allocated using this as the base? By how much?
- Calculate the predetermined manufacturing overhead allocation rate using machine hours as an allocation base
- Is manufacturing overhead over or under allocated using this as the base? By how much?
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Sound Investing Uncover Fraud And Protect Your Portfolio
Authors: Kate Mooney
1st Edition
0071481826, 9780071481823
