Taylor Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The
Question:
Taylor Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017:
Budgeted manufacturing overhead costs.................................$3,800,000
Budgeted machine-hours........................................................200,000
Actual manufacturing overhead costs.....................................$3,660,000
Actual machine-hours............................................................196,000
Required
1. Calculate the budgeted manufacturing overhead rate.
2. Calculate the manufacturing overhead allocated during 2017.
3. Calculate the amount of under- or over allocated manufacturing overhead. Why do Taylor's managers need to calculate this amount?
Step by Step Answer:
1 Budgeted manufacturing overhead rate 19 per machinehour 2 Manufacturing overhead allocated Actual ...View the full answer
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
