Ask Question
BusinessBusiness
17 December, 15:26

Barefoot Running Company's work in process inventory on June 1 has a balance of $22,900 representing Job No. 265. During June, $50,700 of direct materials were requisitioned for Job No. 265 and $35,500 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 130% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,300. No new jobs were started during June. Job No. 265 is completed on June 28. Is manufacturing overhead overallocated or underallocated for the month of June? By how much? A. $4,850 overallocatedB. $4,850 underallocatedC. $11,530 underallocatedD. $11,530 overallocated

+3
Answers (1)
  1. 17 December, 15:42
    0
    The correct answer is A.

    Explanation:

    Giving the following information:

    Job No. 265 incurred $35,500 on direct labor costs. Manufacturing overhead is allocated at 130% of direct labor cost. The actual manufacturing overhead costs incurred in June amounted to $41,300.

    First, we need to calculate the manufacturing overhead allocated:

    Allocated MOH = Estimated manufacturing overhead rate * Actual amount of allocation base

    Allocated MOH = 1.30*35,500 = $46,150

    Now, we can calculate the under/over allocation:

    Over/under allocation = real MOH - allocated MOH = 41,300 - 46,150 = 4,850 overallocated
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Barefoot Running Company's work in process inventory on June 1 has a balance of $22,900 representing Job No. 265. During June, $50,700 of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Eunice tells a colleague, "i wish professor carlson would retire. he's got a nice big office and the department can't afford to hire any new faculty. i'm getting my ph. d. next month, and i'd love to work here." this is an example of:
Answers (1)
Choose all that apply. The main types of financial institutions are 1) savings and loans 2) banks 3) stock firms 4) financial advisors 5) credit unions isn't it 2,5,3,
Answers (1)
Dapper Corporation had only one job in process on May 1. The job had been charged with $3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost.
Answers (1)
Evidence pertaining to the airline industry suggests that
Answers (1)
The wall street journal provides a set of guidelines each year for purchasing a laptop computer. the guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes.
Answers (1)
New Questions in Business
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
Suppose during 2014 that Federal Express reported the following information (in millions) : net sales of $35,497 and net income of $98.
Answers (2)
During a certain four-year period, the consumer price index (CPI) increased by 30%, but during the next four-year period, it increased by only 10%. Which of these conditions must have existed during the second four-year period? A. Deflation B.
Answers (2)
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.).
Answers (1)
Name and describe the four basic types of fees and cost a franchise owner must pay
Answers (1)
Home » Business » Barefoot Running Company's work in process inventory on June 1 has a balance of $22,900 representing Job No. 265. During June, $50,700 of direct materials were requisitioned for Job No. 265 and $35,500 of direct labor cost was incurred on Job No.
Sign Up Forgot Password?