Question 7 Consider the following selected cost data for Schwarzmetal GmbH for 2019. Budgeted manufacturing overhead €7 000 000 Budgeted machine-hours 200 000 Actual manufacturing overhead €6 800 000 Actual machine-hours 195 000 Schwarzmetal's job-costing system has a single manufacturing overhead cost pool (allocated using a budgeted rate based on actual machine-hours). Any amount of under- or overallocation is immediately written off to Cost of Goods Sold. Required 1 Calculate the budgeted manufacturing overhead rate. 2 Journalise the allocation of manufacturing overhead. 3 Calculate the amount of under- or overallocation of manufacturing overhead. Is the amount significant? Journalise the disposition of this amount on the basis of the closing balances in the relevant accounts.
Question 7 Consider the following selected cost data for Schwarzmetal GmbH for 2019. Budgeted manufacturing overhead €7 000 000 Budgeted machine-hours 200 000 Actual manufacturing overhead €6 800 000 Actual machine-hours 195 000 Schwarzmetal's job-costing system has a single manufacturing overhead cost pool (allocated using a budgeted rate based on actual machine-hours). Any amount of under- or overallocation is immediately written off to Cost of Goods Sold. Required 1 Calculate the budgeted manufacturing overhead rate. 2 Journalise the allocation of manufacturing overhead. 3 Calculate the amount of under- or overallocation of manufacturing overhead. Is the amount significant? Journalise the disposition of this amount on the basis of the closing balances in the relevant accounts.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 3PB: Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should...
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