At the beginning of the year, Westfield Manufacturing determined that estimated overhead costs would be $900,000, while the actual overhead cost for the year totaled $935,000. Furthermore, it was determined that the estimated allocation basis would be 75,000 machine hours, while machines actually ran for 78,000 hours. What was the dollar amount of under-allocated or over- allocated manufacturing overhead?

At the beginning of the year, Westfield Manufacturing determined that estimated overhead costs would be $900,000, while the actual overhead cost for the year totaled $935,000. Furthermore, it was determined that the estimated allocation basis would be 75,000 machine hours, while machines actually ran for 78,000 hours. What was the dollar amount of under-allocated or over- allocated manufacturing overhead?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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