KC Enterprises estimated the company will incur $96,380 in overhead costs and will use 5,090 direct labor hours during the year. Actual direct labor hours came in at 4,150. Calculate the predetermined overhead allocation rate, and prepare the journal entry for the allocation of overhead. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).
KC Enterprises estimated the company will incur $96,380 in overhead costs and will use 5,090 direct labor hours during the year. Actual direct labor hours came in at 4,150. Calculate the predetermined overhead allocation rate, and prepare the journal entry for the allocation of overhead. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:KC Enterprises estimated the company will incur $96,380 in overhead costs and will use 5,090
direct labor hours during the year. Actual direct labor hours came in at 4,150.
Calculate the predetermined overhead allocation rate, and prepare the journal entry for the
allocation of overhead.
(Round your answers to two decimal places when needed and use rounded answers for all future
calculations).
Total estimated
overhead cost
Actual Quantity of the
Allocation Base Used by
Each
Date
?
Description
Submit All Parts
Total estimated quantity of
the overhead allocation base
?
Predetermined
Debit
Job Allocated
Overhead Allocation = Manufacturing Overhead
Rate
=
Credit
Predetermined Overhead
Allocation Rate
=
Cost
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