FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to
jobs. During the year, the company actually incurred manufacturing overhead costs of $583,000 and 136,000 direct
labor hours were worked. The company estimated that it would incur $525,800 of manufacturing overhead during the
year and that 150,100 direct labor hours would be worked.
By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary
calculations to the nearest cent.)
OA. $57,200 overallocated
B. $107,000 underallocated
C. $57,200 underallocated
OD. $107,000 overalloca.d
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Transcribed Image Text:Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During the year, the company actually incurred manufacturing overhead costs of $583,000 and 136,000 direct labor hours were worked. The company estimated that it would incur $525,800 of manufacturing overhead during the year and that 150,100 direct labor hours would be worked. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.) OA. $57,200 overallocated B. $107,000 underallocated C. $57,200 underallocated OD. $107,000 overalloca.d
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