In its first year of operation, Oriole Printing Shop estimated manufacturing overhead costs and activity in order to determine a predetermined overhead rate. At year end, March 31, overhead was over-applied by $3,400. It has been decided this over-applied overhead is material at the end of the year and the amount should be allocated among work in process 13%, finished goods 26%, and the rest to the cost of goods sold. Prepare the adjusting entry to close out the over-applied overhead. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit

In its first year of operation, Oriole Printing Shop estimated manufacturing overhead costs and activity in order to determine a predetermined overhead rate. At year end, March 31, overhead was over-applied by $3,400. It has been decided this over-applied overhead is material at the end of the year and the amount should be allocated among work in process 13%, finished goods 26%, and the rest to the cost of goods sold. Prepare the adjusting entry to close out the over-applied overhead. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $157,350 4,560 $156,600 4,700 Estimated machine-hours Actual manufacturing overhead Actual machine-hours The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round your intermediate calculations to 2 decimal places.)
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $351,500 and direct labor hours would be 46,900. Actual manufacturing overhead costs incurred were $323,800, and actual direct labor hours were 54,200. The journal entry to apply the factory overhead costs for the year would include a a.credit to Factory Overhead for $405,958 b.credit to Factory Overhead for $351,500 c.debit to Factory Overhead for $323,800 d.debit to Factory Overhead for $405,958
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