A company allocates overhead on the basis of direct labour hours. Calculate their under or over-allocated overhead
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Question:
A company allocates overhead on the basis of direct labour hours. Calculate their under or over-allocated overhead for the year based on the following information: Budgeted machine hours 24500 Budgeted direct labour hours 12250 Budgeted overhead cost for the year $980000 Actual machine hour 23000 Actual direct labour hours 12000 Actual overhead cost for the year $945000
Answer is $15000 over-allocated show me the work process, and explain the difference between
over-allocated and under-allocated
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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