Thompson Manufacturing allocates overhead based on machine hours. The following data is provided: ⚫ Estimated Manufacturing Overhead: $450,000 • Actual Manufacturing Overhead: $470,000 Estimated Machine Hours: 30,000 • . Actual Machine Hours: 28,000 What is the amount of over- or under-allocated manufacturing overhead? A) Over-allocated by $30,000 B) Under-allocated by $30,000 C) Over-allocated by $50,000 D) Under-allocated by $50,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
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Thompson Manufacturing allocates overhead based on machine
hours. The following data is provided:
⚫ Estimated Manufacturing Overhead: $450,000
•
Actual Manufacturing Overhead: $470,000
Estimated Machine Hours: 30,000
•
.
Actual Machine Hours: 28,000
What is the amount of over- or under-allocated manufacturing
overhead?
A) Over-allocated by $30,000
B) Under-allocated by $30,000
C) Over-allocated by $50,000
D) Under-allocated by $50,000
Transcribed Image Text:Thompson Manufacturing allocates overhead based on machine hours. The following data is provided: ⚫ Estimated Manufacturing Overhead: $450,000 • Actual Manufacturing Overhead: $470,000 Estimated Machine Hours: 30,000 • . Actual Machine Hours: 28,000 What is the amount of over- or under-allocated manufacturing overhead? A) Over-allocated by $30,000 B) Under-allocated by $30,000 C) Over-allocated by $50,000 D) Under-allocated by $50,000
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