Shirley Enterprises uses job costing. Actual overhead for the year was $494,800. The allocated overhead was $524,000. What is the balance in the manufacturing overhead account?

Question

Quizplus · Accepted Answer

Since allocated overhead is greater than actual overhead, there is an overallocation of overhead. To find the balance in the manufacturing overhead account, we need to subtract allocated overhead from actual overhead.
$524,000 - $494,800 = $29,200
Therefore, the manufacturing overhead account has an overallocation of $29,200.

Shirley Enterprises Uses Job Costing