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Author Question: Babcox Manufacturing uses a predetermined manufacturing overhead rate based on direct labour hours ... (Read 106 times)

cabate

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on: Jan 4, 2020
Babcox Manufacturing uses a predetermined manufacturing overhead rate based on direct labour hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows:

Actual manufacturing overhead cost$400,000
Estimated manufacturing overhead cost$420,000
Estimated direct labour cost$180,000
Estimated direct labour hours         60,000
Actual direct labour hours         55,000
Estimated machine hours         80,000
Actual machine hours         84,000

By how much was manufacturing overhead overallocated or underallocated for the year?
◦ $20,000 overallocated
◦ $15,000 underallocated
◦ $15,000 overallocated
◦ $20,000 underallocated
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Marked as best answer by cabate on Jan 4, 2020

uniquea123

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Reply #1 on: Jan 4, 2020
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cabate

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Reply 2 on: Jan 4, 2020
Wow, this really help

isabelt_18

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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