4-24 Budgeted manufacturing overhead rate, allocated manufacturing overhead. Gammaro Manufacturer uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2020: Budgeted manufacturing overhead costs Budgeted machine-hours Actual manufacturing overhead costs Actual machine-hours $4,600,000 184,000 $4,830,000 180,000 1. Calculate the budgeted manufacturing overhead rate. 2. Calculate the manufacturing overhead allocated during 2020. 3. Calculate the amount of under- or overallocated manufacturing overhead. Why do Gammaro's manag- ers need to calculate this amount?
4-24 Budgeted manufacturing overhead rate, allocated manufacturing overhead. Gammaro Manufacturer uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2020: Budgeted manufacturing overhead costs Budgeted machine-hours Actual manufacturing overhead costs Actual machine-hours $4,600,000 184,000 $4,830,000 180,000 1. Calculate the budgeted manufacturing overhead rate. 2. Calculate the manufacturing overhead allocated during 2020. 3. Calculate the amount of under- or overallocated manufacturing overhead. Why do Gammaro's manag- ers need to calculate this amount?
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Transcribed Image Text:4-24 Budgeted manufacturing overhead rate, allocated manufacturing overhead. Gammaro
Manufacturer uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per
machine-hour. The following data are available for 2020:
Budgeted manufacturing overhead costs
Budgeted machine-hours.
Actual manufacturing overhead costs
Actual machine-hours
$4,600,000
184,000
$4,830,000
180,000
1. Calculate the budgeted manufacturing overhead rate.
2. Calculate the manufacturing overhead allocated during 2020.
3. Calculate the amount of under- or overallocated manufacturing overhead. Why do Gammaro's manag-
ers need to calculate this amount?
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Step 1: Introducing Predetermined Overhead Rate and Overapplied or Underapplied Manufacturing OH
VIEWStep 2: Working for Computation of Budgeted Manufacturing OH Rate
VIEWStep 3: Working for Computation of Manufacturing OH Allocated During 2020
VIEWStep 4: Working for Computation of Under or Overallocated Manufacturing OH
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