A Company's Manufacturing Overhead Control Account Balance at the Fiscal

A company's manufacturing overhead control account balance at the fiscal period end is a $905,000 debit, its work-in-process control is $75,000, and the manufacturing overhead allocated is $850,000. Direct manufacturing labour was 10,000 hours, and the budget rate is $85 per hour.
Required:
Calculate the total amount of over or underallocated overhead to be adjusted and specify whether the manufacturing overhead control account should be debited or credited for the adjustment.

Correct Answer:

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The total amount to be adjusted is the d...

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