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Problem - Ragu Company uses normal costing. |t allocates manufacturing overhead costs using a budget rate per machine-hour. The following data are available for 2017:
Budgeted manufacturing overhead costs RM 8,000,000
Budgeted machine-hours 400,000
Actual manufacturing overhead costs RM 7,720,000
Actual machine-hours 390,000
Required -
i. Calculate the budgeted manufacturing overhead rate.
ii. Calculate the manufacturing overhead allocated during 2017.
iii. Calculate the amount of under- or overallocated manufacturing overhead.
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