Hurley Enterprises uses job costing. Actual overhead for the year was $494,500. The allocated overhead was $523,500. What is the balance in the manufacturing overhead account?

Question

Quizplus · Accepted Answer

The allocated overhead is greater than the actual overhead, indicating an overallocation. The amount of overallocation is $523,500 - $494,500 = $29,000. Therefore, the balance in the manufacturing overhead account is $29,000 overallocated.

Hurley Enterprises Uses Job Costing