erme ACCT 201 xy G Sales Revenue ls 7508c Review Test Danie

erme .. ACCT 201 xy G Sales Revenue ls $750.8c Review Test Daniel Aranda Google Chrome Secure https Principles of Managerial Accounting PlayerTest.aspxtestResultld 6769955768backa handler-urn%3DPearson%252fccru- Daniel Aranda 1 1/a0/18 2:07 PM Review Quiz: Ch 3 Qu Score: 0 of 1 pt X 3.5-223a Close 20 of 24 Test Score: 80 77%, 21 of 26 pts Hitop Manufacturing uses a predetermmined manufacturing overhead rate based on direct laber hours to alocate manufacturing overhead to jobs Selected data about the company\'s operations follows 500.500 $550 000 $175900 50 700 60.300 40 800 35,100 Actual manufacturing averhead cost Estimated manfacturing overhead cost Estimated direct labor cost Estimañed direct l abor hours direct labor hours Estimated machine hours Actual machine hours By how much was manufacturing overhead A$49 500 overalocated or underallocated for the year? Round inbermed ary calculations to the nearest cent) 54B 549 500 underallocated $153,755 averallocate nux $153755 underallocaned Question is complete Tap on the red indicators to see incorect answers BA mend scelete

Solution

Estimated Manufacturing Overhead Cost = $550,000
Estimated Direct Labor hours = 50,700

Predetermined Overhead Rate = Estimated Manufacturing Overhead Cost / Estimated Direct Labor hours
Predetermined Overhead Rate = $550,000 / 50,700
Predetermined Overhead Rate = $10.85

Actual Direct Labor hours = 60,300

Manufacturing Overhead Cost applied = Predetermined Overhead Rate * Actual Direct Labor hours
Manufacturing Overhead Cost applied = $10.85 * 60,300
Manufacturing Overhead Cost applied = $654,255

Overallocated Manufacturing Overhead = Manufacturing Overhead Cost applied - Actual Manufacturing Overhead Cost
Overallocated Manufacturing Overhead = $654,255 - $500,500
Overallocated Manufacturing Overhead = $153,755