question archive TEXXON company produces a line of bicycles
Subject:BusinessPrice: Bought3
TEXXON company produces a line of bicycles. TEXXON uses a normal costing system and allocates manufacturing overhead using direct manufacturing labor hours. The following data are for 2021 Budgeted manufacturing overhead cost 2.240,000 Budgeted direct labor-hours 56,000 Actual manufacturing overhead costs 2,430,000 Actual direct labor-hours 54,000 TEXXON company dispose the under-overallocated manufacturing overhead using proration based on based on the amount of manufacturing overhead allocated to WIP.EG and COGS accounts. Account Account balance Manufacturing MOH in cach account (before Overhead in Each balance allocated in proration) Account Balance the current year as a Allocated in the percent of total Current Year (Before Proration) Work in process control 100,000 ? ? (WIP) Finished goods (FG) 150,000 2.9% 4,750,000 Cost of Goods Sold 2,064,960 2 (COGS) Total 22.160.000 2 QI- The amount of over or underallocated overhead is equal to PAT TEXXON company dispose the under-overallocated manufacturing overhead using "proration based on based on the amount of manufacturing overhead allocated to WIP.EG and COGS accounts Account Account balance Manufacturing MOH In each account (before Overhead In Each balance allocated in proration) Account Balance the current year as a Allocated in the percent of total Current Year (Before Proration) Work in process control 100,000 ? ? (WIP) Finished goods (FG) 150,000 ? 2.9% Cost of Goods Sold 4,750,000 2,064,960 ? (COGS) Total 2.160,000 Q1- The amount of over or underallocated overhead is equal to 190.000 Overallocation 270.000 Underallocation 300.000 Underallocation We can't find the answer