Question 2 J. Morgan Ltd has budgeted $ 735,000 for manufacturing overhead for the upcoming year. It forecast that 62,50

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Question 2 J Morgan Ltd Has Budgeted 735 000 For Manufacturing Overhead For The Upcoming Year It Forecast That 62 50 1 (441.97 KiB) Viewed 45 times

Question 2 J. Morgan Ltd has budgeted $ 735,000 for manufacturing overhead for the upcoming year. It forecast that 62,500 machine hours will be used in the factory and budgeted direct labour hours were 21000. The average direct labour rate is budgeted to be $25. Actual data for the year were: Actual Manufacturing overhead Actual machines hours Actual direct labour wage rate Actual direct labour hours worked $470.300 83.010 $19.30 17.630 Required 1. Compute the budgeted manufacturing overhead rate under each of the following cost drivers. a) Direct labour hours b) Machine hours 2. Compute the amount of underallocated or overallocated manufacturing overhead under each of the cost drivers listed in the requirment 1.