Sticklers Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the direct labour cost required. At the beginning of the year, the company expected to incur the following:

Required:
1. Compute Sticklers' predetermined overhead rate.
2. How much manufacturing overhead was allocated to jobs during the year?
3. How much manufacturing overhead was incurred during the year?
4. Is manufacturing overhead over allocated or under allocated at the end of the year and by how much?

Question

Sticklers Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the direct labour cost required. At the beginning of the year, the company expected to incur the following:
 
 Required:
1. Compute Sticklers' predetermined overhead rate.
2. How much manufacturing overhead was allocated to jobs during the year?
3. How much manufacturing overhead was incurred during the year?
4. Is manufacturing overhead over allocated or under allocated at the end of the year and by how much?

Quizplus · Accepted Answer

The Answer of Sticklers Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the direct labour cost required. At the beginning of the year, the company expected to incur the following:
 
 Required:
1. Compute Sticklers' predetermined overhead rate.
2. How much manufacturing overhead was allocated to jobs during the year?
3. How much manufacturing overhead was incurred during the year?
4. Is manufacturing overhead over allocated or under allocated at the end of the year and by how much?

Sticklers Manufacturing Uses a Predetermined Manufacturing Overhead Rate to Allocate