A company estimated the manufacturing overhead costs for 2018 at $420,000. The total estimated direct labor hours are 15,000 hours, and the estimated machine hours to be worked are 6,000 hours. The actual labor hours were 16,500 hours and the overheads account had the debit balance of $450,000. Compute the over or under allocated manufacturing overheads for 2018? a. $12,000 under-allocated b. $12,000 over-allocated c. $68,182 over-allocated d. $68,182 under-allocated

A company estimated the manufacturing overhead costs for 2018 at $420,000. The total estimated direct labor hours are 15,000 hours, and the estimated machine hours to be worked are 6,000 hours. The actual labor hours were 16,500 hours and the overheads account had the debit balance of $450,000. Compute the over or under allocated manufacturing overheads for 2018? a. $12,000 under-allocated b. $12,000 over-allocated c. $68,182 over-allocated d. $68,182 under-allocated

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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