Metropolitan Enterprises Reports the Following Information at December 31 $\begin{array}{cc}\text {Manufacturing Overhead }\\\hline\begin{array}{l|l}\$4,300&\$45,500 \\21,000\\18,500\end{array}\end{array}$

question 84

Essay

Metropolitan Enterprises reports the following information at December 31:
$\begin{array}{cc}\text {Manufacturing Overhead }\\\hline\begin{array}{l|l}\$4,300&\$45,500 \\21,000\\18,500\end{array}\end{array}$
Requirements
1.What is the actual manufacturing overhead of Metropolitan Enterprises?
2.What is the allocated manufacturing overhead?
3.Is manufacturing overhead underallocated or overallocated? By how much?

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Definitions:

Variable Manufacturing Overhead

Costs of manufacturing that vary with the level of production, such as utilities for the production facility and raw materials.

Cash Conversion Cycle

A metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Days' Sales

A financial ratio that measures the average number of days it takes a company to convert its receivables into cash.

Payable Outstanding

The total amount of a company's obligations or debts that have not yet been paid to creditors, often referred to as accounts payable.