Question

The T-account showing the manufacturing overhead activity for Aliyah Corp. for 2018 is as follows

Manufacturing overhead

195,000

203,000

Requirements

1. What is the actual manufacturing overhead?

Short answer

The actual manufacturing overhead is $195,000

Step-by-step solution

Indirect expenses

The indirect expenses of the company means the expenses which are not directly related with the manufacturing of goods. The aggregate of all the indirect expenses are termed as the manufacturing overheads.

Actual manufacturing overheads

$$\begin{gathered} \mathbf{Actualmanufacturingoverhead}\mathbf{=}\mathbf{Debitbalanceofmanufacturingoverheadaccount} \\ \mathbf{=}\mathbf{\$}\mathbf{195}\mathbf{,}\mathbf{000} \end{gathered}$$