Manufacturing overhead allocation: Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads . These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows: Predetermined overhead allocation rate = Estimated Manufacturing overhead Cost Allocation base Under/ over allocation of overhead: The overheads are allocated using an overhead allocation rate which is calculated on the basis of estimated overhead costs and allocation bases. Hence there may be a difference in allocated overhead and actual overhead incurred. This difference gives birth to the under/ over allocation of overhead. To indicate: The difference between underallocated and overallocated overhead and the reason for each situation

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 19RQ

To determine

Manufacturing overhead allocation:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:

$Predetermined overhead allocation rate = \frac{Estimated Manufacturing overhead Cost}{Allocation base}$

Under/ over allocation of overhead:

The overheads are allocated using an overhead allocation rate which is calculated on the basis of estimated overhead costs and allocation bases. Hence there may be a difference in allocated overhead and actual overhead incurred. This difference gives birth to the under/ over allocation of overhead.

To indicate:

The difference between underallocated and overallocated overhead and the reason for each situation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the ending inventory under variable costing ?

Please provide the answer to this general accounting question using the right approach.

What is the depreciation expense for the truck ?

Answer 2

Question

Chapter 19, Problem 19RQ

To determine

Manufacturing overhead allocation:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:

$Predetermined overhead allocation rate = \frac{Estimated Manufacturing overhead Cost}{Allocation base}$

Under/ over allocation of overhead:

The overheads are allocated using an overhead allocation rate which is calculated on the basis of estimated overhead costs and allocation bases. Hence there may be a difference in allocated overhead and actual overhead incurred. This difference gives birth to the under/ over allocation of overhead.

To indicate:

The difference between underallocated and overallocated overhead and the reason for each situation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 19, Problem 19RQ

To determine

Manufacturing overhead allocation:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:

$Predetermined overhead allocation rate = \frac{Estimated Manufacturing overhead Cost}{Allocation base}$

Under/ over allocation of overhead:

The overheads are allocated using an overhead allocation rate which is calculated on the basis of estimated overhead costs and allocation bases. Hence there may be a difference in allocated overhead and actual overhead incurred. This difference gives birth to the under/ over allocation of overhead.

To indicate:

The difference between underallocated and overallocated overhead and the reason for each situation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 19, Problem 19RQ

To determine

Manufacturing overhead allocation:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:

$Predetermined overhead allocation rate = \frac{Estimated Manufacturing overhead Cost}{Allocation base}$

Under/ over allocation of overhead:

The overheads are allocated using an overhead allocation rate which is calculated on the basis of estimated overhead costs and allocation bases. Hence there may be a difference in allocated overhead and actual overhead incurred. This difference gives birth to the under/ over allocation of overhead.

To indicate:

The difference between underallocated and overallocated overhead and the reason for each situation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 19, Problem 19RQ

To determine

Manufacturing overhead allocation:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:

$Predetermined overhead allocation rate = \frac{Estimated Manufacturing overhead Cost}{Allocation base}$

Under/ over allocation of overhead:

The overheads are allocated using an overhead allocation rate which is calculated on the basis of estimated overhead costs and allocation bases. Hence there may be a difference in allocated overhead and actual overhead incurred. This difference gives birth to the under/ over allocation of overhead.

To indicate:

The difference between underallocated and overallocated overhead and the reason for each situation

Answer 6

Chapter 19, Problem 19RQ

To determine

Manufacturing overhead allocation:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:

$Predetermined overhead allocation rate = \frac{Estimated Manufacturing overhead Cost}{Allocation base}$

Under/ over allocation of overhead:

The overheads are allocated using an overhead allocation rate which is calculated on the basis of estimated overhead costs and allocation bases. Hence there may be a difference in allocated overhead and actual overhead incurred. This difference gives birth to the under/ over allocation of overhead.

To indicate:

The difference between underallocated and overallocated overhead and the reason for each situation

Answer 7

Chapter 19, Problem 19RQ

To determine

Manufacturing overhead allocation:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. These costs are allocated to the products using the predetermined overhead allocation rate. The formula of predetermined overhead allocation rate is as follows:

$Predetermined overhead allocation rate = \frac{Estimated Manufacturing overhead Cost}{Allocation base}$

Under/ over allocation of overhead:

The overheads are allocated using an overhead allocation rate which is calculated on the basis of estimated overhead costs and allocation bases. Hence there may be a difference in allocated overhead and actual overhead incurred. This difference gives birth to the under/ over allocation of overhead.

To indicate:

The difference between underallocated and overallocated overhead and the reason for each situation

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 19 - Prob. 1QC Ch. 19 - When a manufacturing company uses direct...Ch. 19 - When a manufacturing company uses indirect...Ch. 19 - When a manufacturing company uses direct labor, it...Ch. 19 - What is Gell's predetermined overhead allocation...Ch. 19 - What is Gell's actual manufacturing overhead cost?...Ch. 19 - How much manufacturing overhead would Gell...Ch. 19 - What entry would Gell make to adjust the...Ch. 19 - A manufacturing company completed work on a job....Ch. 19 - Prob. 10QC

Want to see the full answer?

Chapter 19 Solutions