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Yucca Inc. uses normal costing to allocate manufacturing overhead based on machine hours. Yucca had the following budget data for the current year: Budgeted factory
Yucca Inc. uses normal costing to allocate manufacturing overhead based on machine hours. Yucca had
the following budget data for the current year:
Budgeted factory overhead
Budgeted machine hours
$
Budgeted production units
Actual results for the current year ended December were as follows:
Actual factory overhead
$
Actual machine hours
Actual production units
a Based on the above data calculate Yucca's predetermined manufacturing overhead rate.
b Calculate the amount of allocated overhead for the period.
c Calculate the amount of overhead under or over allocated. Clearly identify whether the overhead
amounts "underallocated" or "overallocated".
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