My HW required to calculate over/under allocated overhead, so I have to calculate actual mfg. overhead cost at first, but I am confusing sth about manufacturing overhead cost. The exercise given:

Direct labor cost
Indirect labor
Indirect material
Factory utilities
Selling & Administrative expense
Marketing promotion
Plant rent
Property tax on plant building
Insurance premium for plant equipment
Customer service cost
RM purchases
Sales revenue


I think the Actual mfg. overhead cost = Indirect labor + indirect material + factory utilities + plant rent + property tax + insurance premium for plant.
However, I am confusing whether the factory utilities, insurance premium for plant are included. Help me .

p/s: I don't know what happened with my previous post :( asking about calculate predetermined overhead rate, disappeared :confused:

You are on the right track. Factory utilities and insurance will be included in actual overhead costs. As for the previous post, please post again.