Question

​Lakeside, Inc. estimated manufacturing overhead costs for the year at $ 375 comma 000​, based on 180 comma 000 estimated direct labor hours. Actual direct labor hours for the year totaled 191 comma 000. The manufacturing overhead account contains debit entries totaling $ 391 comma 000. The Manufacturing Overhead for the year was​ ________. (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

Answer 1

The Manufacturing Overhead for the year was​   $18,000 overallocated.

Explanation:

• Lakeside, Inc. estimated manufacturing overhead costs for the year at $ 375 comma 000​, based on 180 comma 000 estimated direct labor hours. Actual direct labor hours for the year totaled 191 comma 000. The manufacturing overhead account contains debit entries totaling $ 391 comma 000.

• The Manufacturing Overhead for the year was​ $18,000
• there are basically two types of business overhead which are  administrative overheads and the manufacturing overheads.
• Overhead expenses includes the following examples,
• the  accounting fees,
• advertising, insurance,
• interest rates,
• legal fees,
• labor work,
• rent, repairing,
• supplies, taxes,
• telephone bills,
• travelling expenses, etc.