Consider the following selected cost data for KYM Inc for
Consider the following selected cost data for KYM Inc. for 2013.
Budgeted manufacturing overhead (MOH) ......... $4,180,000
Budgeted machine hours (MH) ............ 190,000
Actual manufacturing overhead (MOH) ending balance . $4,230,000
Actual machine hours (MH) ............... 192,000
KYM’s job-costing system has a single manufacturing overhead cost pool (allocated using a budgeted rate based on actual MH). Any amount of underallocation or overallocation is immediately written off to cost of goods sold.
REQUIRED
1. Compute the budgeted manufacturing overhead (MOH) rate.
2. Journalize the allocation of manufacturing overhead (MOH).
3. Compute the amount of underallocation or overallocation of MOH. Is the amount significant? Journalize the disposition of this amount based on the ending balances in the relevant accounts.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help