Samson manufactures wooden backyard playground equipment. Samson estimated $1,800,000 of manufacturing overhead and $2,000,000 of direct labor
Question:
1. Calculate Samson's predetermined manufacturing overhead rate assuming that the company uses direct labor cost as an allocation base.
2. How much manufacturing overhead would have been allocated to manufacturing jobs during the year?
3. At year-end, was manufacturing overhead overallocated or underallocated? By how much?
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