A manufacturing company, Solaris Components, applies factory overhead based on direct labor hours. At the beginning of the year, it was estimated that factory overhead costs would be $360,000, and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $370,000, and actual direct labor hours were 48,000. The journal entry to apply the factory overhead costs for the year would include a: a. Debit to Factory Overhead for $384,000 b. Credit to Factory Overhead for $360,000 c. Credit to Factory Overhead for $384,000 d. Debit to Factory Overhead for $370,000

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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A manufacturing company, Solaris Components, applies factory overhead based
on direct labor hours. At the beginning of the year, it was estimated that factory
overhead costs would be $360,000, and direct labor hours would be 45,000.
Actual manufacturing overhead costs incurred were $370,000, and actual direct
labor hours were 48,000.
The journal entry to apply the factory overhead costs for the year would include
a:
a. Debit to Factory Overhead for $384,000
b. Credit to Factory Overhead for $360,000
c. Credit to Factory Overhead for $384,000
d. Debit to Factory Overhead for $370,000
Transcribed Image Text:A manufacturing company, Solaris Components, applies factory overhead based on direct labor hours. At the beginning of the year, it was estimated that factory overhead costs would be $360,000, and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $370,000, and actual direct labor hours were 48,000. The journal entry to apply the factory overhead costs for the year would include a: a. Debit to Factory Overhead for $384,000 b. Credit to Factory Overhead for $360,000 c. Credit to Factory Overhead for $384,000 d. Debit to Factory Overhead for $370,000
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