Rogue Manufacturing Uses a Predetermined Manufacturing Overhead Rate to Allocate

question 34

Essay

Rogue Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following:

Required:
1. Compute Rogue's predetermined overhead rate.
2. How much manufacturing overhead was allocated to jobs during the year?
3. How much manufacturing overhead was incurred during the year?
4. Is manufacturing overhead over allocated or under allocated at the end of the year and by how much?

---

Definitions:

Fixed Cost

A fixed cost is a business expense that remains constant regardless of changes in production levels or sales volumes.

Relevant Range

The span of activity or production level within which the assumptions about fixed and variable costs are valid.

Activity Changes

Refers to adjustments or variations in the level of operations or processes within an organization, often impacting costs and productivity.

Variable To Fixed Costs

The process of converting costs that vary with production volumes into costs that remain constant regardless of volume.