Reference no: EM132692805
Question - XYZ Company had the following information:
Budgeted overhead $75,000
Actual overhead $80,000
Budgeted Direct-labor hours 20,000
Ending balances in the following accounts:
Ending Balance Actual DLH in Ending Balance
Raw Materials Inventory $40,000 0
Work In Process Inventory $30,000 2,100
Finished Goods Inventory $60,000 8,400
Cost of Goods Sold $210,000 10,500
Required -
If 21,000 direct labor hours are used, calculate the amount of allocated manufacturing overhead.
By how much is XYZ's manufacturing overhead under or over applied? Be sure to specify over versus under-applied.
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