ACC431 Lecture 4: Garrison11ce_Ch05 2
Document Summary
Disposition of underapplied or overapplied overhead they are incurred. In periods of abnormally high production, the amount of fixed overhead allocated to each unit of production is decreased so that inventories are not measured above cost. Unallocated overheads are recognized as an expense in the period in which: current accounting standards applicable in canada (ias 2) state that: The balance in the manufacturing overhead account must be treated in one of two ways depending on whether it was under- or overapplied during the year: if overhead was underapplied, the remaining balance is closed out to. Cogs: if overhead was overapplied, the remaining balance is allocated among. Wip, fg, and cogs in proportion to the overhead applied during the current period in the ending balances of these accounts. Tiger"s manufacturing overhead is: ,000 overapplied, ,000 underapplied, ,000 overapplied, ,000 underapplied. Tiger, inc. had actual manufacturing overhead costs of ,210,000 and a predetermined overhead rate of . 00 per machine hour.
