A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, estimated factory overhead costs were $825,000 and estimated direct labor hours were 55,000. Actual manufacturing overhead costs incurred were $798,000, and actual direct labor hours were 48,000. The entry to apply the factory overhead costs for the year would include a: a. credit to Factory Overhead for $720,000 b. debit to Factory Overhead for $798,000 c. debit to Factory Overhead for $720,000 d. credit to Factory Overhead for $825,000

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, estimated factory overhead costs were $825,000 and estimated direct labor hours were 55,000. Actual manufacturing overhead costs incurred were $798,000, and actual direct labor hours were 48,000. The entry to apply the factory overhead costs for the year would include a: a. credit to Factory Overhead for $720,000 b. debit to Factory Overhead for $798,000 c. debit to Factory Overhead for $720,000 d. credit to Factory Overhead for $825,000

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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Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?
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Prepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.
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