(L. OBJ. 4) Under/over allocated overhead [10 min] The T-account showing the manufactur...

(L. OBJ. 4) Under/over allocated overhead [10 min]

The T-account showing the manufacturing overhead activity for Edith, Corp., for 2011 is as follows:

Requirements

1. What is the actual manufacturing overhead?

2. What ¡s the allocated manufacturing overhead?

3. What is the predetermined manufacturing overhead rate as a percentage of direct labor Cost, if actual direct labor costs were $170,000?

4. Is manufacturing overhead underallocated or overallocated? By how much?

5. Is Cost of goods sold too high or too low?