Question

Date: 02/16/20 4. Taylor Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017: (Click the icon to view the data.) Read the requirements Requirement 1. Calculate the budgeted manufacturing overhead rate. Determine the formula, then calculate the budgeted manufacturing overhead rate. - Budgeted manufacturing overhead rate Requirement 2. Calculate the manufacturing overhead allocated during 2017 Determine the formula, then calculate the manufacturing overhead allocated during 2017 (3) (4) = Manufacturing overhead allocated Requirement 3. Calculate the amount of under-or overallocated manufacturing overhead. Why do Taylor's managers need to calculate this amount? The manufacturing overhead is (5) (5) by $ bys to Why do Taylor's managers need to calculate this amount? of the Taylor's managers need to calculate the under-or overallocated manufacturing overhead at the (6) These adjustments (8) the year because the overhead costs allocated are based on (7) - reported income used to evaluate managerial performance. 1: Data Table Budgeted manufacturing overhead costs Budgeted machine-hours Actual manufacturing overhead costs Actual machine-hours $3,800,000 200,000 $ 3,660,000 196,000 2: Requirements 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?

Answer 1

	Budgeted Overhead Rate =Budgeted manufacturing overhead / Budgeted direct machine hours
	Budgeted Overhead Rate =$3,800,000 / 200,000 hours =$19.00 per direct machine hours
	Manufacturing overhead applied =Budgeted Overhead Rate*Actual direct machine hours
	Manufacturing overhead applied =$19.00*196,000 hours =$3,724,000
	Actual Manufacturing overhead =$3,660,000
	Overapplied Manufacturing Overhead =Actual Manufacturing overhead - Manufacturing overhead applied
	Overapplied Manufacturing Overhead =$3,724,000 - $3,660,000 =$64,000
	So the answers are as follows:
	1.Budgeted manufacturing overhead
	2.Budgeted machine hours
	3.Actual Machine Hours
	4.Budgeted manufacturing Overhead Rate
	5.Overallocated
	6.End
	7.Actual
	8.affect