Question

need help with #3

EQuestion Help Bamey Industries manufactures wooden backyard playground equipment. Bamey estmated $1,875,000 of manufacturing overhead and $2,020,000 of direct labor cost for the year. After the year was over, the accounting records indicated that the company had actually incurred $1,620,000 of manufacturing overhead and $2,550,000 of direct labor cost 1. Calculate Bamey's predetermined manufacturing overhead rate, assuming that the company uses direct labor cost as an allocation base. 2. How much manufacturing overhead would have been allocated to manufacturing jobs during the year? 3. At year-end, was manufacturing overhead overallocated or underallocated? By how much? 1. Calculate Bamey's predetermined manufacturing overhead rate, assuming that the company uses diret labor cost as an alocation base. (Round the percentage to the nearest hundredth percent, XXX.) Predetermined manufacturing Estimated manufacturing overhead costs 1875000 Estimated direct labor cost overhead rate 2020000 92.82 % 2. How much manufacturing overthead would have been allocated to manufacturing jobs during the year? (Enter the percentage to the nearest hundredth percent, X.XX) Manufacturing Predetermined manufacturing overhead rate 92.82 Actual direct labor costs overhead allocated x 2550000 2366010 3. At year-end, was manufacturing overhead overallocated or underallocated? By how much? Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Actual overhead = $1,620,000

Applied overhead = $2,366,910

Over allocated overhead = Applied overhead - Actual overhead

= 2,366,910-1,620,000

= $746,910

Manufacturing Overhead

Actual overhead	1,620,000	Applied overhead	2,366,910
		Ending balance	746,910

Manufacturing overhead is Over allocated by $746,910.

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