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During May Company had following expenditures: indirect material used: $25,000 indirect labor: $12,000 factory utilities: $5,000 delivery vehicle insurance: $1,200 factory rent: $3,000 store rent:
During May Company had following expenditures: indirect material used: $25,000 indirect labor: $12,000 factory utilities: $5,000 delivery vehicle insurance: $1,200 factory rent: $3,000 store rent: $18,000 Company allocate overhead based on labor hours. Predetermined MOH rate calculated as $24.50 per hour. Actual labor hours happened during May is 2,000 hours. Calculate actual and allocated overhead and adjust overhead at the end of May. Company has following balances as of May 31; WIP Inventory: $25,000 Finished Goods: $15,000 COGS: $120,000 Close underallocated or overallocated overhead to WIP, Finished Goods and COGS
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