Q. 10SE-b - Horngren'S Financial And Managerial Accounting

Question

Question: The T-account showing the manufacturing overhead activity for Aliyah Corp. for 2018is as follows:

                                         Manufacturing overhead

195,000

203,000

Requirements

2. What is the allocated manufacturing overhead?  

Step-by-Step Solution

Answer

The allocated manufacturing overhead is $203,000

Step 1: manufacturing process

Manufacturing process means the process of converting the raw material into the finished goods by through machines, employees, etc.

Step 2: Allocated manufacturing overheads

$$\begin{gathered} \mathbf{Allocatedmanufacturingoverhead}\mathbf{=}\mathbf{Sumtotalofcreditbalanceofmanufacturingoverheadaccount} \\ \mathbf{=}\mathbf{\$}\mathbf{203}\mathbf{,}\mathbf{000} \end{gathered}$$