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Author Question: Sullivan Company uses a predetermined overhead rate based on direct labour hours to allocate ... (Read 159 times)

dbose

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Sullivan Company uses a predetermined overhead rate based on direct labour hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $500,000 of manufacturing overhead during the year and that 100,000 direct labour hours would be worked. During the year, the company actually incurred manufacturing overhead costs of $590,000 and 120,000 direct labour hours were worked.

By how much was manufacturing overhead overallocated or underallocated for the year?
◦ $90,000 overallocated
◦ $10,000 underallocated
◦ $90,000 underallocated
◦ $10,000 overallocated


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Marked as best answer by dbose on Jan 4, 2020

Gabe

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dbose

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Reply 2 on: Jan 4, 2020
YES! Correct, THANKS for helping me on my review


xthemafja

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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