Northern Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs. At the beginning of the year, the company expected to incur the following:
Required:
1. Compute Northern's indirect cost allocation rate based on labour cost.
2. Compute Northern's indirect cost allocation rate based on machine hours.
3. How much overhead was allocated during the year if the allocation base was machine hours?
4. How much manufacturing overhead was incurred during the year?

Question

Northern Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs. At the beginning of the year, the company expected to incur the following:
  Required:
1. Compute Northern's indirect cost allocation rate based on labour cost.
2. Compute Northern's indirect cost allocation rate based on machine hours.
3. How much overhead was allocated during the year if the allocation base was machine hours?
4. How much manufacturing overhead was incurred during the year?

Quizplus · Accepted Answer

The Answer of Northern Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs. At the beginning of the year, the company expected to incur the following:
  Required:
1. Compute Northern's indirect cost allocation rate based on labour cost.
2. Compute Northern's indirect cost allocation rate based on machine hours.
3. How much overhead was allocated during the year if the allocation base was machine hours?
4. How much manufacturing overhead was incurred during the year?

Northern Manufacturing Uses a Predetermined Manufacturing Overhead Rate to Allocate