Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year $360,000 Estimated direct labor cost for the year (@ $9/hr.) Actual manufacturing overhead cost for January Actual direct labor cost for January (1,200 hours) 180,000 19,500 11,000 Assuming that direct labor hours is the basis for applying consulting overhead,
Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year $360,000 Estimated direct labor cost for the year (@ $9/hr.) Actual manufacturing overhead cost for January Actual direct labor cost for January (1,200 hours) 180,000 19,500 11,000 Assuming that direct labor hours is the basis for applying consulting overhead,
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Calculate and Use Overhead Rate
Selected data for the consulting department of Austin Consulting, 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)
$360,000
180,000
19,500
11,000
Assuming that direct labor hours is the basis for applying consulting overhead,
a. Calculate the predetermined overhead rate. $
per direct labor hour
b. Prepare a journal entry that applies consulting overhead for January.
General Journal
Description
Debit
Credit
÷
0
÷
0
c. By what amount is consulting overhead over- or under applied in January?
+A
$
over-applied ÷
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