Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consult- ing, Inc., follow: Estimated consulting overhead cost for the year. Estimated direct labor cost for the year (@ $9/hr.). Actual manufacturing overhead cost for January. Actual direct labor cost for January (1,200 hours). Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. b. Prepare a journal entry that applies consulting overhead for January. C. By what amount is consulting overhead over- or underapplied in January? $360,000 180,000 19,500 11,000
Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consult- ing, Inc., follow: Estimated consulting overhead cost for the year. Estimated direct labor cost for the year (@ $9/hr.). Actual manufacturing overhead cost for January. Actual direct labor cost for January (1,200 hours). Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. b. Prepare a journal entry that applies consulting overhead for January. C. By what amount is consulting overhead over- or underapplied in January? $360,000 180,000 19,500 11,000
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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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![E3-6A. Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consult-
ing, Inc., follow:
Estimated consulting overhead cost for the year.
Estimated direct labor cost for the year (@ $9/hr.).
Actual manufacturing overhead cost for January.
Actual direct labor cost for January (1,200 hours).
Assuming that direct labor cost is the basis for applying consulting overhead,
Calculate the predetermined overhead rate.
Prepare a journal entry that applies consulting overhead for January.
By what amount is consulting overhead over- or underapplied in January?
a.
b.
C.
$360,000
180,000
19,500
11,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1955c78-61f7-4481-a2f9-80719c3f8b8c%2F71b77970-2d13-4a1f-9f02-4dd4b3f69360%2F4l7deel_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E3-6A. Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consult-
ing, Inc., follow:
Estimated consulting overhead cost for the year.
Estimated direct labor cost for the year (@ $9/hr.).
Actual manufacturing overhead cost for January.
Actual direct labor cost for January (1,200 hours).
Assuming that direct labor cost is the basis for applying consulting overhead,
Calculate the predetermined overhead rate.
Prepare a journal entry that applies consulting overhead for January.
By what amount is consulting overhead over- or underapplied in January?
a.
b.
C.
$360,000
180,000
19,500
11,000
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