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Accounting for manufacturing overhead. Consider the following selected cost data for the Pittsburgh Forging Company for 2008.Budgeted manufacturing overhead costs $7,500,000Budgeted machine-hours 250,000Actual manufacturing overhead costs $7,300,000Actual machine-hours 245,000
The company uses normal costing. Its job-costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted machine-hour rate. Any amount of under- or over allocation is written off to Cost of Goods Sold.
1. Compute the budgeted manufacturing overhead rate.2. Prepare the journal entries to record the allocation of manufacturing overhead.3. Compute the amount of under- or over allocation of manufacturing overhead. Is the amount material?Prepare a journal entry to dispose of this amount
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