A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it was estimated that factory overhead costs would be $420,100 and direct labor hours would be 54,100. Actual manufacturing overhead costs incurred were $318,000, and actual direct labor hours were 53,000. The journal entry to apply the factory overhead costs for the year would include a: a. debit to Factory Overhead for $318,000. b. credit to Factory Overhead for $411,280. c. credit to Factory Overhead for $468,730. d. debit to Factory Overhead for $368,730.

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it was estimated that factory overhead costs would be $420,100 and direct labor hours would be 54,100. Actual manufacturing overhead costs incurred were $318,000, and actual direct labor hours were 53,000. The journal entry to apply the factory overhead costs for the year would include a: a. debit to Factory Overhead for $318,000. b. credit to Factory Overhead for $411,280. c. credit to Factory Overhead for $468,730. d. debit to Factory Overhead for $368,730.

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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