Question

Flores Foundry in Charleston, South Carolina, uses a predetermined manufacturing overhead rate to allocate overhea o individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur th Following: (Click the icon to view the costs.) Read the requirements. Requirement 1. Compute Flores' predetermined manufacturing overhead rate. Flores' predetermined manufacturing overhead rate is per machine hour. Requirement 2. How much manufacturing overhead was allocated to jobs during the year? The amount of manufacturing overhead allocated to jobs during the year is Requirement 3. How much manufacturing overhead was incurred during the year? Is manufacturing overhead underallocated or overallocated at the end of the year? By how much? The amount of manufacturing overhead incurred during the year was Manufacturing overhead was by Requirement 4. Were the jobs overcosted or undercosted? By how much? Jobs were by

Answer 1

Req.1	Flores' Predetermined manufacturing overhead rate	$ 8	Per machine hour
	(Estimated manufacturing overhead / Estimated machine hour )
Req.2	The amount of manufacturing overhead allocated to jobs during the year	$ 444,000	=55500*8
	( Predetermined overhead rate x actual machine hours)

	Req.3 The amount of manufacturing overhead incurred during the year was $ 496,500 (470,000 + 18,500 + 8,000 ) . Manufacturing overhead was Underallocated by $ 52,500 .( 496,500 - 444,000 ).
Req.4	Jobs were Undercosted by $ 52,500 .