A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, estimated factory overhead costs were $960,000 and estimated direct labor hours were 40,000. Actual manufacturing overhead costs incurred were $885,000, and actual direct labor hours were 35,000. The entry to apply the factory overhead costs for the year would include a: a. credit to Factory Overhead for $840,000 b. debit to Factory Overhead for $885,000 c. debit to Factory Overhead for $840,000 d. credit to Factory Overhead for $960,000

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, estimated factory overhead costs were $960,000 and estimated direct labor hours were 40,000. Actual manufacturing overhead costs incurred were $885,000, and actual direct labor hours were 35,000. The entry to apply the factory overhead costs for the year would include a: a. credit to Factory Overhead for $840,000 b. debit to Factory Overhead for $885,000 c. debit to Factory Overhead for $840,000 d. credit to Factory Overhead for $960,000

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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