The manufacturing records for Kool Kayaks at the end of 2008 fiscal year fiscal year

show the following information about manufacturing overhead:

Overhead appli

ed to production ..........................

$405,000

Actual manufacturing overhead costs ..................

$430,250

Overhead allocation rate for the year ...................

$40 per machine hour

Required:

i)

How many machine hours did Kool Kayaks use in 2008?

ii)

Was manufacturing overhead over- or under-allocated for the year? By how much?

iii)

Record the entry to close the overhead variance.

Calculate the under- or over-recovery of overheads for each cost centre for 20X7.