47. Before the year began, Milkway Manufacturing estimated that manufacturing overhead for the year would be $175,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost Actual direct labor hours $182,000 20,000 If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been I A. $42,000 overallocated. OB. $7,000 underallocated. C. $7,000 overallocated. D. $42,000 underallocated.

47. Before the year began, Milkway Manufacturing estimated that manufacturing overhead for the year would be $175,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost Actual direct labor hours $182,000 20,000 If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been I A. $42,000 overallocated. OB. $7,000 underallocated. C. $7,000 overallocated. D. $42,000 underallocated.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

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A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
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