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[SOLVED] Lakeside, Inc. estimated manufacturing overhead costs for the year at $377,000, based on 182,000 estimated direct l…..

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costs for the year at $377,000, based on 182,000 eslirmaled dredt labor hours. Actual diredt labor hours for the year Overhead for the year was (Round any totaled 196,000. The O A. $14,720 O B. $40,929 underallocaterd O C. $40,929 overallocated O D. $14,720 overallocaled 6/4/2013 3:02 PM 1,162 KB No 1.770 KB 35% tion.. Microsoft Excel 97-2003

Lakeside, Inc. estimated manufacturing overhead costs for the year at $377,000, based on 182,000 estimated direct labor hours. Actual direct labor hours for the year totaled 196,000. The manufacturing overhead account contains debit entries totaling $391,000. The Manufacturing Overhead for the year was _______. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) A. $14,720 underallocated B. $40,929 underallocated C. $40,929 overallocated D. $14,720 overallocaled

Expert Answer

 

Predetermined overhead rate=(Estimated manufacturing overhead/Estimated direct labor hours)

=($377000/182000)=$2.07(Approx)

Hence allocated overhead=($2.07*196000)=$405720

Hence overallocated overheads=($405720-$391000)=$14720(D).

 

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