The production of bottled chemicals at Akram Fun Unlimited takes place in two departments - A...

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The production of bottled chemicals at Akram Fun Unlimited takes place in two departments - A and B. The overhead in Department A is allocated based on machine hours and the overhead in Department B is allocated based on direct manufacturing labor-hours. Akram Fun Unlimited, uses a normal- costing system and reported actual overhead for the month of June of $16000 and $33000 for the Department A and Department B, respectively. The company reported the following information related to its inventory accounts and cost of goods sold for the month of June: Details.. Balance before proration Molding Dept Overhead Allocated Decorating Dept Overhead Allocated. Work in Process ($) 26000 4400 2300. Finished Goods ($). 14000 970 1900 (a2) The over/under allocation of Department B is $ Cost of Goods Sold ($) 115000 15000 21800 Requirements: (a) Calculate the over/under allocated overheads of each department on the Answer Template and input the values in the following boxes [3 marks]: (a1) The over/under allocation of Department A is $ The production of bottled chemicals at Akram Fun Unlimited takes place in two departments - A and B. The overhead in Department A is allocated based on machine hours and the overhead in Department B is allocated based on direct manufacturing labor-hours. Akram Fun Unlimited, uses a normal- costing system and reported actual overhead for the month of June of $16000 and $33000 for the Department A and Department B, respectively. The company reported the following information related to its inventory accounts and cost of goods sold for the month of June: Details.. Balance before proration Molding Dept Overhead Allocated Decorating Dept Overhead Allocated. Work in Process ($) 26000 4400 2300. Finished Goods ($). 14000 970 1900 (a2) The over/under allocation of Department B is $ Cost of Goods Sold ($) 115000 15000 21800 Requirements: (a) Calculate the over/under allocated overheads of each department on the Answer Template and input the values in the following boxes [3 marks]: (a1) The over/under allocation of Department A is $

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To calculate the overunder allocated overhead for each department we need to compare the actual over... View the full answer