Beirut Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $9 per direct labor-hour. The following data are obtained from the accounting records for June 2014:

Required:
a. What actual amount of manufacturing overhead costs was incurred during June 2014?
b. What amount of manufacturing overhead was allocated to all jobs during June 2014?
c. For June 2014, was manufacturing overhead underallocated or overallocated? Explain.

Question

Beirut Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $9 per direct labor-hour. The following data are obtained from the accounting records for June 2014:
 
Required:
a. What actual amount of manufacturing overhead costs was incurred during June 2014?
b. What amount of manufacturing overhead was allocated to all jobs during June 2014?
c. For June 2014, was manufacturing overhead underallocated or overallocated? Explain.

Quizplus · Accepted Answer

The Answer of Beirut Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $9 per direct labor-hour. The following data are obtained from the accounting records for June 2014:
 
Required:
a. What actual amount of manufacturing overhead costs was incurred during June 2014?
b. What amount of manufacturing overhead was allocated to all jobs during June 2014?
c. For June 2014, was manufacturing overhead underallocated or overallocated? Explain.

Beirut Plastic Products Company Manufactures Pipes and Applies Manufacturing Costs