A manufacturing company applied factory overhead based on direct labor hours. At the beginning of the year, it was estimated that factory overhead costs would be $608,600 and direct labor hours would be 35,800. Actual manufacturing overhead costs incurred were $442,700, and actual direct labor hours were 23,300. The entry to apply the factory overhead costs for the year would include a: a. credit to Factory Overhead for $396,100. b. debit to Factory Overhead for $442,700. c. debit to Factory Overhead for $396,100. d. credit to Factory Overhead for $608,600.

A manufacturing company applied factory overhead based on direct labor hours. At the beginning of the year, it was estimated that factory overhead costs would be $608,600 and direct labor hours would be 35,800. Actual manufacturing overhead costs incurred were $442,700, and actual direct labor hours were 23,300. The entry to apply the factory overhead costs for the year would include a: a. credit to Factory Overhead for $396,100. b. debit to Factory Overhead for $442,700. c. debit to Factory Overhead for $396,100. d. credit to Factory Overhead for $608,600.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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