PLEASE HELP!!!!!!! Total manufacturing overhead estimated at the beginning of th
ID: 2475698 • Letter: P
Question
PLEASE HELP!!!!!!!
Total manufacturing overhead estimated at the beginning of the year $103,520
Total direct labor costs estimated at the beginning of the year $185,000
Total direct labor hours estimated at the beginning of the year 3,500 direct labor hours
Actual manufacturing overhead costs for the year $99,570
Actual direct labor costs for the year $150,000
Actual direct labor hours for the year 2,950 direct labor hours
The company bases its manufacturing overhead allocation on the number of direct labor hours. What was the predetermined overhead allocation rate for the year? (Round your answer to the nearest cent.)
How much overhead was allocated to all jobs throughout the year?
Was the overhead account over- or under-allocated? By how much?
Prepare the journal entry to clear the overhead account.
Explanation / Answer
1. Answer: B
Explanation: B)
Estimated manufacturing overhead $105,840.00
Estimated direct labor hours ÷ 3,600 hours
Predetermined overhead allocation rate (per direct labor hour) $29.40
Actual direct labor hours for the year × 2,950 hours
Manufacturing overhead allocated to production $86,730.00
2. Answer: C
Explanation: C)
Estimated manufacturing overhead $105,840
Estimated direct labor hours 3,600 hours
Predetermined overhead allocation rate (per direct labor hour) $29.40
($105,840 ÷ 3,600 direct labor hours)
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