Hurt Manufacturing Has Two Departments That Produce a Line of Tables

Essay

Hurt Manufacturing has two departments that produce a line of tables. The Machining Department allocates manufacturing overhead using machine hours as the allocation base while the Finishing Department allocates manufacturing overhead using direct labour cost as the allocation base. Data for June are shown below:

A) Determine the predetermined manufacturing overhead rate for the Machining Department.
B) Determine the predetermined manufacturing overhead rate for the Finishing Department.
C) Determine the balances of the manufacturing overhead accounts for each department as of June 31. Indicate whether the amounts represent over allocated or under allocated manufacturing overhead.