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Question - Scoot manufactures motorbikes and allocates manufacturing overhead based on machine hours. Scoot expects to incur RM240,000 of manufacturing overhead costs and use 4000 machine hours each month.
On 31 January 2020, Scoot has the following information.
Scoot used 300 machine hours.
Indirect materials used was RM3,000.
Indirect labour costs incurred was RM4000.
Other manufacturing overhead incurred on account was RM13,000
REQUIRED -
1) Calculate predetermined overhead allocation rate.
2) Calculate overhead allocated for the month of January 2020.
3) Calculate over or under-allocated overhead.
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