question archive The manufacturing records for Krazy Kayaks at the end of the 2012 fiscal year show the following information about manufacturing overhead: Overhead allocated to production
The manufacturing records for Krazy Kayaks at the end of the 2012 fiscal year show the following information about manufacturing overhead: Overhead allocated to production
Subject:AccountingPrice: Bought3
The manufacturing records for Krazy Kayaks at the end of the 2012 fiscal year show the following information about manufacturing overhead:
Overhead allocated to production . . . . . . . . . . . . . . . . . . $ 405,900
Actual manufacturing overhead costs . . . . . . . . . . . . . . . $ 428,000
Overhead allocation rate for the year . . . . . . $ 41 per machine hour
Requirements
1. How many machine hours did Krazy Kayaks use in 2012?
2. Was manufacturing overhead over- or under-allocated for the year and by how much?
3. Prepare the journal entry to close out the over- or under-allocated overhead.
