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

question 143

Essay

Metropolitan Enterprises reports the following information at December 31:
$\begin{array}{l}\text { Manufacturing Overhead }\\\hline\begin{array}{l|l}\$ 4,300& \$ 45,500 \\21,000 \\18,500\end{array}\end{array}$ 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:

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period.

Net Income

The net income of a business following the subtraction of all costs and taxes from the total earnings.

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period, calculated using the beginning inventory, additions, and subtractions of goods sold.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life.