Manufacturing overhead was estimated to be $300,000 for the year based on 25,000 direct labor hours. Actual manufacturing overhead was $270,000, and actual direct labor hours were 24,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct? a. Manufacturing Overhead would be credited for $18,000. b. Manufacturing Overhead would be credited for $30,000. c. Manufacturing Overhead would be debited for $18,000. d. Manufacturing Overhead would be debited for $30,000.

Manufacturing overhead was estimated to be $300,000 for the year based on 25,000 direct labor hours. Actual manufacturing overhead was $270,000, and actual direct labor hours were 24,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct? a. Manufacturing Overhead would be credited for $18,000. b. Manufacturing Overhead would be credited for $30,000. c. Manufacturing Overhead would be debited for $18,000. d. Manufacturing Overhead would be debited for $30,000.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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