Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labour hours, Actual manufacturing overhead was $225,000, and actual correct labour hours were 19,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct? a. Manufacturing Overhead would be credited for $12,500. b. Manufacturing Overhead would be credited for $25,000. c. Manufacturing Overhead would be debited for $12,500. d. Manufacturing Overhead would be debited for $25,000.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
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Manufacturing overhead was estimated to be $250,000 for the year
along with 20,000 direct labour hours, Actual manufacturing
overhead was $225,000, and actual correct labour hours were
19,000. To dispose of the balance in the Manufacturing Overhead
account, which of the following would be correct?
a. Manufacturing Overhead would be credited for $12,500.
b. Manufacturing Overhead would be credited for $25,000.
c. Manufacturing Overhead would be debited for $12,500.
d. Manufacturing Overhead would be debited for $25,000.
Transcribed Image Text:Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labour hours, Actual manufacturing overhead was $225,000, and actual correct labour hours were 19,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct? a. Manufacturing Overhead would be credited for $12,500. b. Manufacturing Overhead would be credited for $25,000. c. Manufacturing Overhead would be debited for $12,500. d. Manufacturing Overhead would be debited for $25,000.
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