Question
Innovative Metal Products Company manufactures pipes and applies manufacturing costs to production using a predetermined rate based on direct labor-hour. Before the year, the cost
Innovative Metal Products Company manufactures pipes and applies manufacturing costs to production using a predetermined rate based on direct labor-hour. Before the year, the cost accountant for Innovative Metal estimated total overhead at $6,000,000 and total direct labor-hours at 500,000 for the year 2028. The following data are obtained from the accounting records for June 2028: Direct materials - 400000 Direct labor (16,000 hours at $11/hour) - 240000 Indirect labor - 25000 Plant facility rent - 100000 Depreciation on plant machinery and equipment - 42000 Sales commissions - 30000 Administrative expenses - 40000 A.What actual amount of manufacturing overhead costs was incurred during June 2028? B. What amount of manufacturing overhead was allocated to all jobs during June 2028? C. For June 2028, was manufacturing overhead under-allocated or overallocated? Explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started