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Well-Flow Company had estimated
$1,053,000 of manufacturing overhead? (MOH) for the year and
58,500
direct labor? (DL) hours, resulting in a predetermined MOH rate of
$ 18 per DL hour. By the end of that? year, the company had actually incurred
$1,005,000 of MOH costs and had used a total of 57,000
DL hours on various jobs.
1. By how much did the company overallocate or underallocate MOH for the? year?
2. Was MOH overallocated or underallocated for the? year? How do you? know?
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