Question
Rally Company manufactures garage storage systems for homeowners. It uses a normal costing system with two direct cost categories - direct materials and direct
Rally Company manufactures garage storage systems for homeowners. It uses a normal costing system with two direct cost categories - direct materials and direct labor and an indirect-cost pool, - manufacturing overhead costs. (Direct Labor hours are the allocation base) For 2018: Budgeted manufacturing overhead costs $1,200,000 Budgeted direct labor hours 20,000 hours Actual manufacturing overhead costs $1,100,000 Actual direct manufacturing labor hours 22,000 Actual direct material costs $1,200,000 The actual direct manufacturing labor rate is $20 per hour a- Calculate the Actual manufacturing overhead rate b- Calculate the Budgeted Manufacturing overhead rate C- Calculate Manufacturing overhead allocated D- Calculate under or over allocation (absolute value) E- Calculate the total manufacturing costs under normal costing
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