The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and $5,024,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C_ November 1 Bal. b/f Direct Materials Used $51,250 256,400 Other transactions incurred: • Indirect material issued to production was $40,360 Total manufacturing labour incurred in November was $368,000, 75% of this amount represented direct labour. • Other manufacturing overhead costs incurred for November amounted to $340,490. • Two jobs were completed with total costs of $384,00o & $270,000 respectively. They were sold on account at a margin of 33½% on sales.

The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and $5,024,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C_ November 1 Bal. b/f Direct Materials Used $51,250 256,400 Other transactions incurred: • Indirect material issued to production was $40,360 Total manufacturing labour incurred in November was $368,000, 75% of this amount represented direct labour. • Other manufacturing overhead costs incurred for November amounted to $340,490. • Two jobs were completed with total costs of $384,00o & $270,000 respectively. They were sold on account at a margin of 33½% on sales.

Name: Calculate the manufacturing overhead variance for Harriott and state t
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Description: Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance. The Harriott manufacturing company uses job order costing system. The company uses machinehours to apply overhead cost to j

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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