Consider the following selected cost data for Schwarzmetal GmbH for 2015.
Budgeted manufacturing overhead.......€7 000 000
Budgeted machine-hours.......................200 000
Actual manufacturing overhead...........€6 800 000
Actual machine-hours...........................195 000
Schwarzmetal's job-costing system has a single manufacturing overhead cost pool (allocated using a budgeted rate based on actual machine-hours). Any amount of under- or overallocation is immediately written off to Cost of Goods Sold.
Required
1. Calculate the budgeted manufacturing overhead rate.
2. Journalize the allocation of manufacturing overhead.
3. Calculate the amount of under- or overallocation of manufacturing overhead. Is the amount significant? Journalize the disposition of this amount on the basis of the closing balances in the relevant accounts.