Prestige Woods manufactures jewelry boxes. The primary materials (wood, brass, and glass) and direct labor are assigned

Question:

Prestige Woods manufactures jewelry boxes. The primary materials (wood, brass, and glass) and direct labor are assigned directly to the products. Manufacturing overhead costs are allocated based on machine hours. Data for 2018 follow:
Estimated Actual Machine hours 32,100 hours 27,000 hours $ 17,000 $ 23,500 Maintenance labor (repairs to equipment) Plan

Requirements
1. Compute the predetermined overhead allocation rate. Round to two decimal places.
2. Post actual and allocated manufacturing overhead to the Manufacturing Overhead T-account.
3. Prepare the journal entry to adjust for under allocated or over allocated overhead.
4. The predetermined overhead allocation rate usually turns out to be inaccurate.
Why don't accountants just use the actual manufacturing overhead rate?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Horngrens Accounting

ISBN: 978-0134674681

12th edition

Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura

Question Posted: