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Q.17-21E-b

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Horngren'S Financial And Managerial Accounting
Found in: Page 944

Short Answer

The manufacturing records for Sporty Kayaks at the end of the 2018 fiscal year show the following information about manufacturing overhead:

Overhead allocated to production

$409,200

Actual manufacturing overhead cost

432,000

Predetermined overhead allocation rate

$44 per machine hours

Requirements

2. Was manufacturing overhead overallocated or underallocated for the year, and by how much?

The underallocated overhead for the year is $22,800

See the step by step solution

Step by Step Solution

Machine hours

Machine hours is a measurement which is used to apply the manufacturing overhead to the manufactured goods of the company.

Underallocation of overhead

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