Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 4.24E
Budgeted manufacturing
Budgeted manufacturing overhead costs | $3,800,000 |
Budgeted machine-hours | 200,000 |
Actual manufacturing overhead costs | $3,660,000 |
Actual machine-hours | 196,000 |
- 1. Calculate the budgeted manufacturing overhead rate.
Required
- 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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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 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?
Gammaro company uses normal costing. it allocates manufacturing overhead cost using a budgeted rate per machine-hours.the following data are available for 2017 :
Budget manufacturing overhead costs $4.600.000
Budgeted machine-hours 184.000
Actual manufacturing overhead costs $4.830.000
Actual machine hours 180.000
Required:
a. Calculate the budget manufacturing overhead rate
b.calculate the manufacturing overhead allocated during 2017
c. Calculate the amount of under or overallocated manufacturing overhead. Why do Gammaro's managers need to calcukate this amount?
Chapter 4 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 4 - Define cost pool, cost tracing, cost allocation,...Ch. 4 - How does a job-costing system differ from a...Ch. 4 - Why might an advertising agency use job costing...Ch. 4 - Describe the seven steps in job costing.Ch. 4 - Give examples of two cost objects in companies...Ch. 4 - Describe three major source documents used in...Ch. 4 - What is the advantage of using computerized source...Ch. 4 - Give two reasons why most organizations use an...Ch. 4 - Distinguish between actual costing and normal...Ch. 4 - Describe two ways in which a house-construction...
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What is Cost Allocation? Definition & Process; Author: FloQast;https://www.youtube.com/watch?v=hLhvvHvZ3JM;License: Standard Youtube License