Total manufacturing overhead - allocated under actual...

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Total manufacturing overhead = allocated under normal costing Actual manufacturing labor costs Budgeted overhead rate = $1,450,000 1.80 = $2,610,000 Underallocated manufacturing = – overhead Actual manufacturing overhead costs Manufacturing overhead allocated = $2,755,000 $2,610,000 = $145,000 There is no under- or overallocated overhead under actual costing because overhead is
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Unformatted text preview: allocated under actual costing by multiplying actual manufacturing labor costs and the actual manufacturing overhead rate. This, of course equals the actual manufacturing overhead costs. All actual overhead costs are allocated to products. Hence, there is no under- or overallocatead...
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