Question: Rochester Ltd has budgeted 435 000 for manufacturing overhead for the

Rochester Ltd. has budgeted $435,000 for manufacturing overhead for the upcoming year. It forecast that 72,500 machine hours will be used in the factory, and budgeted direct labour-hours were 17,400. The average direct labour rate is budgeted to be $20. Actual data for the year were:
Actual manufacturing overhead ..... $434,300
Actual machine hours ............ 73,010
Actual direct labour wage rate ..... $ 19.60
Actual direct labour-hours worked ..... 17,630
1. Compute the budgeted manufacturing overhead rate under each of the following cost drivers:
a. Direct labour-hours
b. Direct labour cost
c. Machine hours
2. Compute the amount of underallocated or overallocated manufacturing overhead under each of the cost drivers listed in requirement 1.

  • CreatedJuly 31, 2015
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