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170,000
Required
Calculate the budgeted manufacturing overhead rate.
Calculate the manufacturing overhead allocated during 2011.
Calculate the under- or overallocated manufacturing overhead.
E4-23 (Accounting for Manufacturing Overhead, page 129)Consider
the following selected cost data for the Pittsburgh Forging Company
for 2011.
Budgeted manufacturing overhead costs
Budgeted machine-hours
Actual manufacturing overhead costs
Actual machine-hours
$7,500,000
250,000
$7,300,000
245,000
The company uses normal costing. Its job-costing system has a single
manufacturing overhead cost pool. Costs are allocated to jobs using a
budgeted machine-hour rate. Any amount of under- or overallocation
is written off to Cost of Goods Sold.
Required
Compute the budgeted manufacturing overhead rate.
Prepare the journal entries to record the allocation of manufacturing
overhead.
Compute the amount of under- or overallocation of manufacturing
overhead. Is the amount material? Prepare a journal entry to dispose
of this amount.
E4-24 (Job Costing, Journal Entries, pages 129-130) The University
of Chicago Press is wholly owned by the university. It performs the
bulk of its work for other university departments, which pay as
though the press were an outside business enterprise. The press also
publishes and maintains a stock of books for general sale. The press
uses normal costing to cost each job. Its job-costing system has two
direct-cost categories (direct materials and direct manufacturing