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Q4) Activity - Based- Costing (25 Marks) Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data
Q4) Activity - Based- Costing (25 Marks) Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017 Budgeted manufacturing overhead costs Budgeted machine-hours Actual manufacturing overhead costs Actual machine-hours $3,800,000 200,000 $3,650,000 196,000 Required: 1.Calculate the budgeted manufacturing overhead rate. 2.Calculate the manufacturing overhead allocated during 2017 3.Calculate the amount of under- or overallocated manufacturing overhead. 4. Why do managers need to calculate the under-or overallocated manufacturing overhead ? Explain
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