Davita Company has estimated its yearly overhead cost at $1,200,000 and its yearly factory labor cost at $ 400,000. It has been determined that the best cost driver for overhead allocation is labor cost. Job 502 incurred $6,000 of labor cost during its completion. The journal entry to record overhead cost for job 502 is: 1. (not the answer) Work in Process - Job 502 18,000 Wages Payable 18,000 2. Work in Process - Job 502 2,000 Manufacturing Overhead 2,000 3. Work in Process - Job 502 6,000 Manufacturing Overhead 6,000 4. Work in Process Job 502 18,000 Manufacturing Overhead 18,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Davita Company has estimated its yearly overhead cost at $1,200,000 and its yearly factory labor cost at $
400,000. It has been determined that the best cost driver for overhead allocation is labor cost. Job 502
incurred $6,000 of labor cost during its completion. The journal entry to record overhead cost for job 502
is: 1. (not the answer) Work in Process - Job 502 18,000 Wages Payable 18,000 2. Work in Process - Job
502 2,000 Manufacturing Overhead 2,000 3. Work in Process - Job 502 6,000 Manufacturing Overhead
6,000 4. Work in Process - Job 502 18,000 Manufacturing Overhead 18,000
Transcribed Image Text:Davita Company has estimated its yearly overhead cost at $1,200,000 and its yearly factory labor cost at $ 400,000. It has been determined that the best cost driver for overhead allocation is labor cost. Job 502 incurred $6,000 of labor cost during its completion. The journal entry to record overhead cost for job 502 is: 1. (not the answer) Work in Process - Job 502 18,000 Wages Payable 18,000 2. Work in Process - Job 502 2,000 Manufacturing Overhead 2,000 3. Work in Process - Job 502 6,000 Manufacturing Overhead 6,000 4. Work in Process - Job 502 18,000 Manufacturing Overhead 18,000
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