FreeBake produces pie crusts and tart shells. The company allocates manufacturing overhead based on the machine hours each job uses. FreeBake reports the following cost data for the past year.

Required:
1. Compute the predetermined overhead rate.
2. Calculate the allocated Manufacturing Overhead for the past year.
3. Compute the under allocated or over allocated Manufacturing Overhead.
4. How will this under allocated or over allocated Manufacturing Overhead be disposed of?
Assume the amount is considered not material and most of the goods manufactured have been sold

Question

FreeBake produces pie crusts and tart shells. The company allocates manufacturing overhead based on the machine hours each job uses. FreeBake reports the following cost data for the past year.
 
 Required:
1. Compute the predetermined overhead rate.
2. Calculate the allocated Manufacturing Overhead for the past year.
3. Compute the under allocated or over allocated Manufacturing Overhead.
4. How will this under allocated or over allocated Manufacturing Overhead be disposed of?
Assume the amount is considered not material and most of the goods manufactured have been sold

Quizplus · Accepted Answer

The Answer of FreeBake produces pie crusts and tart shells. The company allocates manufacturing overhead based on the machine hours each job uses. FreeBake reports the following cost data for the past year.
 
 Required:
1. Compute the predetermined overhead rate.
2. Calculate the allocated Manufacturing Overhead for the past year.
3. Compute the under allocated or over allocated Manufacturing Overhead.
4. How will this under allocated or over allocated Manufacturing Overhead be disposed of?
Assume the amount is considered not material and most of the goods manufactured have been sold

FreeBake Produces Pie Crusts and Tart Shells