A manufacturing company has actual overhead of $570,000, budgeted overhead of $620,000, and budgeted 18,000 direct labour hours. Management believes that direct labour hours are the best allocation base to use for allocation of overhead. Actual direct labour hours were 20,000 hours.
Assuming that the company used normal costing methods for allocation, and has the following account balances in its General Ledger, what are the adjustments for each account using the proration method?

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The Answer of A manufacturing company has actual overhead of $570,000, budgeted overhead of $620,000, and budgeted 18,000 direct labour hours. Management believes that direct labour hours are the best allocation base to use for allocation of overhead. Actual direct labour hours were 20,000 hours.
Assuming that the company used normal costing methods for allocation, and has the following account balances in its General Ledger, what are the adjustments for each account using the proration method?

A Manufacturing Company Has Actual Overhead of $570,000, Budgeted Overhead