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Author Question: Boyle Manufacturing has two departments that produce small appliances. The Drilling Department ... (Read 32 times)

Tirant22

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Boyle Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labour cost as the allocation base. Data for April are shown below:

Drilling Dept.Cutting Dept.
Estimated annual manufacturing overhead costs$120,000 $330,000
Estimated annual direct labour cost$60,000 $600,000
Estimated annual machine hours40,000 6,000
Actual manufacturing overhead costs for April$8,000 $15,000
Actual direct labour cost for April$3,500 $31,000
Actual machine hours for April2,100 500

A) Determine the predetermined manufacturing overhead rate for the Drilling Department.
B) Determine the predetermined manufacturing overhead rate for the Cutting Department.
C) Determine the balances of the manufacturing overhead accounts for each department as of
April 30. Indicate whether the amounts represent overallocated or underallocated manufacturing overhead.


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Marked as best answer by Tirant22 on Jan 4, 2020

briezy

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Tirant22

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Reply 2 on: Jan 4, 2020
Thanks for the timely response, appreciate it


bigsis44

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Reply 3 on: Yesterday
Wow, this really help

 

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