Innovative Metal Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $12 per direct labor-hour. The following data are obtained from the accounting records for June 2018:

Required:
a.What actual amount of manufacturing overhead costs was incurred during June 2018?
b.What amount of manufacturing overhead was allocated to all jobs during June 2018?
c.For June 2018, was manufacturing overhead underallocated or overallocated? Explain.

Question

Innovative Metal Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $12 per direct labor-hour. The following data are obtained from the accounting records for June 2018:
  
Required:
a.What actual amount of manufacturing overhead costs was incurred during June 2018?
b.What amount of manufacturing overhead was allocated to all jobs during June 2018?
c.For June 2018, was manufacturing overhead underallocated or overallocated? Explain.

Quizplus · Accepted Answer

The Answer of Innovative Metal Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $12 per direct labor-hour. The following data are obtained from the accounting records for June 2018:
  
Required:
a.What actual amount of manufacturing overhead costs was incurred during June 2018?
b.What amount of manufacturing overhead was allocated to all jobs during June 2018?
c.For June 2018, was manufacturing overhead underallocated or overallocated? Explain.

Innovative Metal Products Company Manufactures Pipes and Applies Manufacturing Costs