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Young Foundry uses a predetermined overhead allocation rate to allocate overhead to (4) individual jobs. based on the machine hours required.Al the beginning of 20
- Young Foundry uses a predetermined overhead allocation rate to allocate overhead to (4) individual jobs. based on the machine hours required.Al the beginning of 20 I 8. the company expected LO incur the following:
Manufacturing overhead costs $ 840.000
Direct labor costs 1.480.000 Machine hours 70.000 hours
|
Al the end of 2018.thecompany h:td actually incurred: | |
| Direct labor COSIS | $ 1.230.000 |
| Depreciation on manufacturing plantand equipment | 620.000 |
| Property Laxes on plant | 35.500 |
| Sales salaries | 26.000 |
| Delivery drivers' wages | 22.500 |
| Plantjanitors wages | 17.000 |
| Machine hours | 60.000 hours |
Reguired :
- Compute Young's predc1em1incdoverheadallocationrate.
- Prepare thejournal entry 10 allocate manufacturing overhead.
- Post themanufacturing overhead transactions to the Manufacturing Overhead T. account. Is manufacturing overhead under allocated or over allocated? By how much?
- Prepare the journal entry to adjust for the under allocated or over allocated nrnnufncturing overhead. Does your entry increase or decrease Cost of Goods Sold?
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