question archive Happy Clicks Inc
Subject:BusinessPrice:3.87 Bought7
Happy Clicks Inc. uses a predetermined overhead allocation rate of $4.75 per machine hour. Actual overhead costs incurred during the year are as follows:
Indirect materials |
$5,200 |
Indirect labor |
$3,750 |
Plant depreciation |
$4,800 |
Plant utilities and insurance |
$9,530 |
Other plant overhead costs |
$12,700 |
Total machine hours used during the year |
7,520 hours |
What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?
Is the manufacturing overhead account under or over allocated and if so by how much?
Journalize the under or over allocation.
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