The RideonWater Company (ROW) produces a line of non-motorised boats. ROW uses a normal costing...
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Accounting
The RideonWater Company (ROW) produces a line of non-motorised boats. ROW uses a normal costing system and allocates manufacturing overhead using direct manufacturing labour cost. The following data are for 2021
Budgeted production volume (number of boats)
110
Budgeted manufacturing overhead costs
$121,000
Budgeted direct manufacturing labour costs
$220,000
Actual production volume (number of boats)
95
Actual manufacturing overhead costs
$121,950
Actual direct manufacturing labour costs
$229,000
Calculate the amount of 'under' or 'over' allocation for manufacturing overhead cost in dollars.
If under-allocated, enter a negative number. If over-allocated, enter a positive number.
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