Budgeted manufacturing overhead rate, allocated manufacturing overhead. 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 200,00 Actual manufacturing overhead costs $3,660,000 Actual machine hours 196,000 #1 Calculate the budgeted manufacturing overhead rate. #2 Calculate the manufacturing overhead allocated during 2017. #3 Calculate the amount of under- or overallocated manufacturing overhead. Why do Taylor’s managers need to calculate this amount?
Budgeted manufacturing
Budgeted manufacturing overhead costs $3,800,000
Budgeted machine-hours 200,00
Actual manufacturing overhead costs $3,660,000
Actual machine hours 196,000
#1 Calculate the budgeted manufacturing overhead rate.
#2 Calculate the manufacturing overhead allocated during 2017.
#3 Calculate the amount of under- or overallocated manufacturing overhead. Why do Taylor’s managers need to calculate this amount?
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