how many machine hours did krazy kayaks use in 2012 552866
Allocating manufacturing overhead
The manufacturing records for Krazy Kayaks at the end of the 2012 fiscal year show the following information about manufacturing overhead:
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Overhead allocated to production . |
$ 405,900 |
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Actual manufacturing overhead costs |
$ 428,000 |
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Overhead allocation rate for the year |
$ 41 per machine hour |
Requirements
1. How many machine hours did Krazy Kayaks use in 2012?
2. Was manufacturing overhead over- or underallocated for the year and by how much?
3. Prepare the journal entry to close out the over- or underallocated overhead.
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