Homework Help is Here – Start Your Trial Now!
Business
Accounting
Harwood Company's job-order costing system applies overhead cost to jobs based on its machine-hours. The predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $202,500 of total manufacturing overhead for an estimated activity level of 81,000 machine-hours. Required: 1. Assume during the year the company works only 76,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T-account. 2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. es Manufacturing Overhead Work in Process Debit Credit Debit Credit (Maintenance) 22,000 (Indirect materials) 8,100 (Indirect labor) 65,000 (Utilities) 35,000 (Insurance) 7,100 (Depreciation) 57,000 Balance (a) (Direct materials) (Direct labor) (Overhead) (a) 720,000 91,000 < Required 1 Required 2A >

Harwood Company's job-order costing system applies overhead cost to jobs based on its machine-hours. The predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $202,500 of total manufacturing overhead for an estimated activity level of 81,000 machine-hours. Required: 1. Assume during the year the company works only 76,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T-account. 2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. es Manufacturing Overhead Work in Process Debit Credit Debit Credit (Maintenance) 22,000 (Indirect materials) 8,100 (Indirect labor) 65,000 (Utilities) 35,000 (Insurance) 7,100 (Depreciation) 57,000 Balance (a) (Direct materials) (Direct labor) (Overhead) (a) 720,000 91,000 < Required 1 Required 2A >

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....
See similar textbooks
icon
Related questions
Question

vnt.1

Harwood Company's job-order costing system applies overhead cost to jobs based on its machine-hours. The predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $202,500 of total manufacturing overhead for an estimated activity level of 81,000 machine-hours. Required: 1. Assume during the year the company works only 76,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T-account. 2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. es Manufacturing Overhead Work in Process Debit Credit Debit Credit (Maintenance) 22,000 (Indirect materials) 8,100 (Indirect labor) 65,000 (Utilities) 35,000 (Insurance) 7,100 (Depreciation) 57,000 Balance (a) (Direct materials) (Direct labor) (Overhead) (a) 720,000 91,000 < Required 1 Required 2A >
Transcribed Image Text:Harwood Company's job-order costing system applies overhead cost to jobs based on its machine-hours. The predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $202,500 of total manufacturing overhead for an estimated activity level of 81,000 machine-hours. Required: 1. Assume during the year the company works only 76,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T-account. 2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. es Manufacturing Overhead Work in Process Debit Credit Debit Credit (Maintenance) 22,000 (Indirect materials) 8,100 (Indirect labor) 65,000 (Utilities) 35,000 (Insurance) 7,100 (Depreciation) 57,000 Balance (a) (Direct materials) (Direct labor) (Overhead) (a) 720,000 91,000 < Required 1 Required 2A >
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS