Biltz company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. during the year, the company actually incurred manufacturing overhead costs of $582,100 and 135,000 direct labor hours were worked. the company estimated that it would incur $525,400 of manufacturing overhead during the year and that 150,400 direct labor hours would be worked. by how much was manufacturing overhead overallocated or underallocated for the year?

manufacturing overhead underallocated for the year $124,102.4

Explanation:

we distribute the expecte rate over the cost dirver

582,100 / 135,000 = 4.3185

150400 x 4.3185 = 649502.4 applied overhead

applied - actual = over or underappied

if actual > applied = underapplied

if actual < applied = overhead

525,400 - 649,502.4 = -124,102.4

c

explanation:

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