Kelsh Company had the following budgeted and actual costs for 2015:
Budgeted Costs Actual Costs
Direct material costs $10,000 $12,000
Direct manufacturing labor costs 40,000 37,000
Manufacturing overhead costs 34,000 35,000
Assume Kelsh Company uses a normal cost system. The company allocates manufacturing overhead costs using direct manufacturing labor costs.
Manufacturing overhead for 2015 is:
a. $1,000 under-allocated
b. $1,000 over-allocated
c. $2,550 under-allocated
d. $3,550 over-allocated
e. $3,550 under-allocated
Kelsh Company had the following budgeted and actual costs for 2015:
Budgeted Costs Actual Costs
Direct material costs $10,000 $12,000
Direct manufacturing labor costs 40,000 37,000
Manufacturing overhead costs 34,000 35,000
Assume Kelsh Company uses a normal cost system. The company allocates manufacturing overhead costs using direct manufacturing labor costs.
Manufacturing overhead for 2015 is:
a. $1,000 under-allocated
b. $1,000 over-allocated
c. $2,550 under-allocated
d. $3,550 over-allocated
e. $3,550 under-allocated