Question

Huckvale Corporation manufactures custom cabinets for kitchens. It uses a normal costing system with two direct cost categories direct materials and direct manufacturing laborand one Indirect cost pool, manufacturing overhead costs. It provides the following information about manufacturing overhead costs for 2020 (Click the icon to view the manufacturing overhead cost information for 2020.) The following information is available as of December 31, 2020 (Click the icon to view the information.) Requirement Calculate the underallocated or overallocated manufacturing overhead at the end of 2020 and prorale it to Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts based on the allocated manufacturing overhead in each account balance using normal coating. Begin rate. (Assume the cost alloca Data Tablo X i Data Table = Budgeted indirect cost ra The m $ 1,160,000 Account Manufacturing Overhead in Each Account Balance Allocated in the Current Year (Before Proration) S 29,000 Identify Budgeted manufacturing overhead costs Budgeted direct manufacturing labor hours Actual manufacturing overhead costs Actual direct manufacturing labor-hours (Use parentheses or a minus 29,000 hours 1,260,000 28,000 hours Account Balance (Before Proration) $ 45,000 65,000 1,600,000 $ Work-in-Process Control Finished Goods Control Underallocated (overalloc indirect costs 63,800 1,067,200 Cost of Goods Sold S 1,710,000 S 1,160,000 alance using Print Done Aca Print Done Finally s Control, Finished Goods Co normal costing (Enter percentages to one decimal point, X.X%. Abbreviations Used: MOH = manufacturing overhead) Account Manufacturing Overhead in Each MOH Balance (Before Account Balance Allocated in the as a Percent Proration Balance (After) Account Proration) Current Year (Before Proration) of Total Amount Proration) Work-in-process control $ 45,000 S 29,000 % Finished goods control $ 65,000 $ 63.800 % ? Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Budgeted manufacturing overhead costs $1,160,000 / Budgeted labor hours 29000 Budgeted indirect cost rate $40 The manufacturing overhead allocated during the year is $ (actual labor hours X indirect cost rate) 28000 hours X 40 $1,120,000 Identify the formula and calculate the underallocated or overallocated manufacturing overhead. (Use parentheses or aminus sign to report overhead overallocated. Actual indirect costs incurred $1,260,000 Underallocated (overallocated) Indirect costs allocated = indirect costs $1,120,000 = $140,000 1 2 Finally, prorate the underallocated or overallocated manufacturing overhead to Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts based on the allocated manufacturing overhead in each accountbalance using normal costing. 4. 5 Account account balance (before proration) a b MOH in each account balance allocated in current year (before Proration a/c balance proration) MOH as a % of total amt. (after proration) d = e = с (c/1160000)*100 d*140000 f=b+e $ 29,000.00 2.5% $ 3,500.00 $ 48,500.00 $ 63,800.00 5.5% $ 7,700.00 $ 72,700.00 $ 1,067,200.00 92.0% $128,800.00 $ 1,728,800.00 $ 1,160,000.00 100.0% $140,000.00 $ 1,850,000.00 7 Work-in-processcontrol 3 Finished goodscontrol Cost of goods sold total 1 $ $ $ $ 45,000.00 65,000.00 1,600,000.00 1,710,000.00