Question: Consider the following selected cost data for the Pittsburgh Forging Co. for 2006: Budgeted manufacturing overhead costs Budgeted machine - hours Actual manufacturing overhead costs

Consider the following selected cost data for the Pittsburgh Forging Co. for 2006:

Budgeted manufacturing overhead costs

Budgeted machine - hours

Actual manufacturing overhead costs

Actual machine - hours

$ 7,000,000

200,000

$ 6,850,000

195,000

The company uses normal costing. Costs are allocated to jobs using a budgeted machine-hour rate. Any amount of under or over allocation is written off to cost of goods sold.

Required:

Calculate the budgeted manufacturing overhead rate.

Calculate the amount of under allocated or over allocated manufacturing overhead.

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