The Chronicle Fabrication Plant had a fire at the beginning of 2019 and most of the records for the year 2018 were lost. Some data for the year 2018 were located by the accountants and are shown below. Total manufacturing overhead estimated at the beginning of the year: Total direct labor costs estimated at the beginning of the year: Total direct labor hours (DLH) estimated at the beginning of the year: Actual manufacturing overhead costs for the year: Actual direct labor costs for the year: Actual direct labor hours (DLH) for the year: $105,840 $186,000 3,600 DLH $99,760 $142,000 2,950 DLH The company bases its manufacturing overhead allocation on direct labor hours. What was the preliminary
The Chronicle Fabrication Plant had a fire at the beginning of 2019 and most of the records for the year 2018 were lost. Some data for the year 2018 were located by the accountants and are shown below. Total manufacturing overhead estimated at the beginning of the year: Total direct labor costs estimated at the beginning of the year: Total direct labor hours (DLH) estimated at the beginning of the year: Actual manufacturing overhead costs for the year: Actual direct labor costs for the year: Actual direct labor hours (DLH) for the year: $105,840 $186,000 3,600 DLH $99,760 $142,000 2,950 DLH The company bases its manufacturing overhead allocation on direct labor hours. What was the preliminary
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The Chronicle Fabrication Plant had a fire at the beginning of 2019 and most of the records for the year 2018
were lost. Some data for the year 2018 were located by the accountants and are shown below.
Total manufacturing overhead estimated at the beginning of the year:
Total direct labor costs estimated at the beginning of the year:
Total direct labor hours (DLH) estimated at the beginning of the year:
Actual manufacturing overhead costs for the year:
Actual direct labor costs for the year:
Actual direct labor hours (DLH) for the year:
$105,840
$186,000
3,600 DLH
$99,760
$142,000
2,950 DLH
The company bases its manufacturing overhead allocation on direct labor hours. What was the preliminary
ending balance in the manufacturing overhead account prior to the year-end adjustment to clear the balance
to zero?
O a. $6,080 credit balance
O b. $4,982 debit balance
O c. $13,030 credit balance
O d. $13,030 debit balance
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