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Q9SE-c

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Horngren'S Financial And Managerial Accounting
Found in: Page 940

Short Answer

Comparing actual to allocated overhead

Columbus Enterprises reports the following information at December 31, 2018:

Manufacturing overhead

3,500

50,600

19,000

34,500

Requirements

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

The manufacturing overhead is underallocated by the amount $6,400

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Step by Step Solution

Under allocation of overhead

The allocation of overhead is under allocated when the actual overhead incurred by the company is more than the allocated manufacturing overhead.

Underallocated overhead amount

The manufacturing overhead of the company is underallocated by the amount of $6,400

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