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Z Iqbal adapted The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base The following data are for

Z. Iqbal, adapted) The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: Budgeted manufacturing overhead costs......................................$4,800,000 Overhead allocation base Machine-hours Budgeted machine-hours.............................................................80,000 Manufacturing overhead costs incurred.......................................$4,900,000 Actual machine-hours..................................................................75,000 Machine-hours data and the ending balances (before proration of under- or over allocated overhead) are as follows: Required 1. Compute the budgeted manufacturing overhead rate for 2017. 2. Compute the under- or over allocated manufacturing overhead of Zaf Radiator in 2017. Dispose of this amount using the following: a. Write-off to Cost of Goods Sold b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold c. Proration based on the overhead allocated in 2017 (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold 3. Which method do you prefer in requirement 2? Explain.

Apr 05 2020 View more View Less

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