Question

1. By the end of March, the company had allocated manufacturing overhead of $60,000 and incurred...

1. By the end of March, the company had allocated manufacturing overhead of $60,000 and incurred $50,000 of actual overhead costs.

a. Did the company over or under-allocate?

b. Before any adjustment, would the Manufacturing Overhead account have a debit or credit balance?

c. What would be the proper adjusting journal entry at the end of March? (include accounts and amounts)

2. By the end of June, the company had a similar discrepancy between actual and allocated overhead. Should they adjust/recalculate the Predetermined Overhead Allocation Rate before the next year-end?

3. What specific event(s) might be causing these discrepancies between actual and allocated overhead?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Company expected to incur $9,450 in manufacturing overhead costs and use 4,500 machine hours for the...
Company expected to incur $9,450 in manufacturing overhead costs and use 4,500 machine hours for the year. Actual manufacturing overhead was $9,400 and the company used 5,050 machine hours. 9. Calculate the predetermined overhead allocation rate using machine hours as the allocation base. _______ / _________ = Predetermined overhead allocation rate ________/ __________ = ____ per machine hour 10. How much manufacturing overhead was allocated during the? year? ________ x ________ = overhead allocated ________ x _________ = ____________
1.Showboat Corporation had actual manufacturing overhead costs for the most recent year of $ 29,700.Manufacturing overhead...
1.Showboat Corporation had actual manufacturing overhead costs for the most recent year of $ 29,700.Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $3.50 per direct labor hour. Direct labor cost is $27 per hour. At the end of the​ year, Cabaret Corporation found it had overallocated manufacturing overhead by $1,350. How much manufacturing overhead was allocated in total during the​ year? 2.Barefoot Running​ Company's work in process inventory on June 1 has a balance of $23,300 representing...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories....
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing...
If manufacturing overhead was under-allocated during 200X for a given company, then, before the entry to...
If manufacturing overhead was under-allocated during 200X for a given company, then, before the entry to close manufacturing overhead, cost-of-goods sold would be: too low too high neither too high or too low undetermined--there is no relationship between the application of manufacturing overhead and Cost-of-Goods-Sold.
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories....
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories....
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories....
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories....
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories....
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing...
Aspen Company estimates its manufacturing overhead to be $506,000 and its direct labor costs to be...
Aspen Company estimates its manufacturing overhead to be $506,000 and its direct labor costs to be $506,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $244,650. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $407,750. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $163,100. Actual...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT