During June, XYZ Company incurred OMR 90,000 of actual Manufacturing Overhead and actual labor hours were 15,000. During the same period, the Manufacturing Overhead was estimated to be OMR 95,000 for the period along with 20,000 direct labor hours. The journal entry to record the application of Manufacturing Overhead to Work in Process would include :a credit to Manufacturing Overhead of OMR 71,250 .a debit to Work in Process of OMR 67,500 .b O None of the given answer is correct .c O credit to Work in Process of OMR 71,250 .d O debit to Manufacturing Overhead of OMR 95,000 .e O

During June, XYZ Company incurred OMR 90,000 of actual Manufacturing Overhead and actual labor hours were 15,000. During the same period, the Manufacturing Overhead was estimated to be OMR 95,000 for the period along with 20,000 direct labor hours. The journal entry to record the application of Manufacturing Overhead to Work in Process would include :a credit to Manufacturing Overhead of OMR 71,250 .a debit to Work in Process of OMR 67,500 .b O None of the given answer is correct .c O credit to Work in Process of OMR 71,250 .d O debit to Manufacturing Overhead of OMR 95,000 .e O

Name: During June, XYZ Company incurred OMR 90,000 of actual ManufacturingO
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Description: During June, XYZ Company incurred OMR 90,000 of actual ManufacturingOverhead and actual labor hours were 15,000. During the same period, theManufacturing Overhead was estimated to be OMR 95,000 for the periodalong with 20,000 direct labor hours. The

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

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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Question

During June, XYZ Company incurred OMR 90,000 of actual Manufacturing
Overhead and actual labor hours were 15,000. During the same period, the
Manufacturing Overhead was estimated to be OMR 95,000 for the period
along with 20,000 direct labor hours. The journal entry to record the
application of Manufacturing Overhead to Work in Process would include
credit to Manufacturing Overhead of OMR 71,250
debit to Work in Process of OMR 67,500 b O
None of the given answer is correct cO
credit to Work in Process of OMR 71,250 d O
debit to Manufacturing Overhead of OMR 95,000
.e O
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