General Accounting Carrington Manufacturing estimated its manufacturingoverhead for the year at $320,000. The actual overhead forthe year was under applied by $15,500. The companyapplied $270,000 to Work in Process.What was the actual overhead incurred by the company?

Step 1: Define Actual Overhead IncurredActual overhead incurred represents the total manufacturing…

Answered: Carrington Manufacturing estimated its…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...

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A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was $445,000, and there were 50,500 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
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The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
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Carrington Manufacturing estimated its manufacturing overhead for the year at $320,000. The actual overhead for the year was under applied by $15,500. The company applied $270,000 to Work in Process. What was the actual overhead incurred by the company?