Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year Estimated direct labor cost for the year (@ $9/hr.) Actual manufacturing overhead cost for January Actual direct labor cost for January (1,200 hours) $360,000 180,000 19,500 11,000 Assuming that direct labor cost is the basis for applying consulting overhead,

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate and Use Overhead Rate
Selected data for the consulting department of Austin Consulting, Inc., follow:
Estimated consulting overhead cost for the year
Estimated direct labor cost for the year (@ $9/hr.)
Actual manufacturing overhead cost for January
Actual direct labor cost for January (1,200 hours)
$360,000
180,000
19,500
11,000
Assuming that direct labor cost is the basis for applying consulting overhead,
a. Calculate the predetermined overhead rate.
0
%
b. Prepare a journal entry that applies consulting overhead for January.
General Journal
Description
Debit
Credit
Work in process inventory
0
0
Consulting overhead
c. By what amount is consulting overhead over- or underapplied in January?
0
0
Consulting overhead was over-applied
by $ 0
in January.
Transcribed Image Text:Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year Estimated direct labor cost for the year (@ $9/hr.) Actual manufacturing overhead cost for January Actual direct labor cost for January (1,200 hours) $360,000 180,000 19,500 11,000 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. 0 % b. Prepare a journal entry that applies consulting overhead for January. General Journal Description Debit Credit Work in process inventory 0 0 Consulting overhead c. By what amount is consulting overhead over- or underapplied in January? 0 0 Consulting overhead was over-applied by $ 0 in January.
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