Nancy Inc., incurred the following actual overhead costs for the month of April: Account Cost Indirect materials $10,000 Indirect labor $20,000 Factory equipment depreciation $ 8,000 Factory building rent $ 7,000 Environmental remediation costs $ 2,000 Overhead is applied based on a predetermined rate of $8 per direct labor hour, and 6,500 direct labor hours were used during April. The balance of the T account for Manufacturing Overhead (MOH) would show which of the following? Group of answer choices $5,000 of credit balance of overallocated MOH $10,000 credit balance of under allocated MOH $5,000 of debit balance of overallocated MOH $10,000 debit balance of under allocated MOH
Nancy Inc., incurred the following actual overhead costs for the month of April: Account Cost Indirect materials $10,000 Indirect labor $20,000 Factory equipment depreciation $ 8,000 Factory building rent $ 7,000 Environmental remediation costs $ 2,000 Overhead is applied based on a predetermined rate of $8 per direct labor hour, and 6,500 direct labor hours were used during April. The balance of the T account for Manufacturing Overhead (MOH) would show which of the following? Group of answer choices $5,000 of credit balance of overallocated MOH $10,000 credit balance of under allocated MOH $5,000 of debit balance of overallocated MOH $10,000 debit balance of under allocated MOH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Nancy Inc., incurred the following actual overhead costs for the month of April:
| Account | Cost |
|---|---|
| Indirect materials | $10,000 |
| Indirect labor | $20,000 |
| Factory equipment |
$ 8,000 |
| Factory building rent | $ 7,000 |
| Environmental remediation costs | $ 2,000 |
Overhead is applied based on a predetermined rate of $8 per direct labor hour, and 6,500 direct labor hours were used during April. The balance of the T account for Manufacturing Overhead (MOH) would show which of the following?
Group of answer choices
$5,000 of credit balance of overallocated MOH
$10,000 credit balance of under allocated MOH
$5,000 of debit balance of overallocated MOH
$10,000 debit balance of under allocated MOH
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