29 a manufacturing company has actual overhead of 570 000 budgeted overhead of 620 0 4315142

29) A manufacturing company has actual overhead of $570,000, budgeted overhead of $620,000, and budgeted 18,000 direct labour hours. Management believes that direct labour hours are the best allocation base to use for allocation of overhead. Actual direct labour hours were 20,000 hours.

Assuming that the company used normal costing methods for allocation, and has the following account balances in its general ledger, what are the adjustments for each account using the proration method based on the amount of manufacturing overhead included in each account balance before proration?

AccountManuf OVH

BalanceIncludedAdjustment

Work-in-process control$62,000$12,400________

Finished Goods$91,000$16,380________

Cost of Goods Sold$1,500,000$330,000________

30) The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine hours in Department 100 and 8,000 direct manufacturing labour hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:

Department 100Department 200

Direct materials purchased on account$110,000$177,500

Direct materials used 32,50013,500

Direct manufacturing labour 52,50053,500

Indirect manufacturing labour 11,0009,000

Indirect materials used 7,5004,750

Lease on equipment16,2503,750

Utilities1,0001,250

Job A incurred 800 machine hours in Department 100 and 300 manufacturing labour hours in Department 200. The company uses a budgeted indirect cost allocation rate for applying overhead to production.

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