Question

Rovet Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine- hour. The following data are available for 2012:
Budgeted manufacturing overhead costs......... $ 4,250,000
Budgeted machine- hours.............. 250,000
Actual manufacturing overhead costs ......... $ 4,120,000
Actual machine- hours ................ 245,000

Required
1. Calculate the budgeted manufacturing overhead rate.
2. Calculate the manufacturing overhead allocated during 2012.
3. Why do Rovet’s managers want to calculate a budgeted manufacturing overhead rate?
4. Calculate the amount of under- or overallocated manufacturing overhead. Why do Rovet’s managers need to calculate this amount?



$1.99
Sales3
Views196
Comments0
  • CreatedJanuary 15, 2015
  • Files Included
Post your question
5000