In: Accounting
Young's Manufacturing Plant uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on machine hours required. At the beginning of 2018, the company expected to incur the following:
Manufacturing overhead costs |
$840,000 |
Direct labor costs |
$1,480,000 |
Machine hours |
70,000 hours |
At the end of 2018, the company actually incurred:
Direct labor costs |
$1,230,000 |
Depreciation on manufacturing equipment |
$620,000 |
Property taxes on plant |
$35,500 |
Sales salaries |
$26,000 |
Delivery drivers' wages |
$22,500 |
Plant janitor's wages |
$17,000 |
Machine hours |
60,000 hours |
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