Exercise 11-6A (Algo) Recording overhead costs in T-accounts LO 11-2 Fanning Company and Finch Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Fanning Company $ 170,900 26,000 $ 21,500 Complet Finch Company $ 238,400 24,000 14,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.
Exercise 11-6A (Algo) Recording overhead costs in T-accounts LO 11-2 Fanning Company and Finch Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Fanning Company $ 170,900 26,000 $ 21,500 Complet Finch Company $ 238,400 24,000 14,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 10SPA: JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M. Evans Sons manufactures parts for...
Related questions
Question
![Exercise 11-6A (Algo) Recording overhead costs in T-accounts LO 11-2
Fanning Company and Finch Company both apply overhead to the Work in Process Inventory account using direct labor hours. The
following information is available for both companies for the year.
Actual manufacturing overhead
Actual direct labor hours
Underapplied overhead
Overapplied overhead
Required
Fanning
Company
$ 170,900
26,000
$ 21,500
Finch
Company
$ 238,400
24,000
14,000
a. Compute the predetermined overhead rate for each company.
b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each
company, assuming the amounts are immaterial.
Required A Required B
Complete this question by entering your answers in the tabs below.
Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the
amounts are immaterial.
Adjusting Entry for Fanning Company:
< Prev
2 of 4
www
www
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F444376df-4de7-44f8-91e3-892918955a96%2F12645b57-4ed6-42ed-98ac-f81408da3a60%2F41rxsxj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-6A (Algo) Recording overhead costs in T-accounts LO 11-2
Fanning Company and Finch Company both apply overhead to the Work in Process Inventory account using direct labor hours. The
following information is available for both companies for the year.
Actual manufacturing overhead
Actual direct labor hours
Underapplied overhead
Overapplied overhead
Required
Fanning
Company
$ 170,900
26,000
$ 21,500
Finch
Company
$ 238,400
24,000
14,000
a. Compute the predetermined overhead rate for each company.
b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each
company, assuming the amounts are immaterial.
Required A Required B
Complete this question by entering your answers in the tabs below.
Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the
amounts are immaterial.
Adjusting Entry for Fanning Company:
< Prev
2 of 4
www
www
Next
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![College Accounting, Chapters 1-27 (New in Account…](https://www.bartleby.com/isbn_cover_images/9781305666160/9781305666160_smallCoverImage.gif)
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![College Accounting, Chapters 1-27 (New in Account…](https://www.bartleby.com/isbn_cover_images/9781305666160/9781305666160_smallCoverImage.gif)
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College