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Thornton Company and Vernon Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Thornton Vernon Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Company $206,350 29,000 Company $248,350 23,000 19,500 $ 30,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) Per Direct Labor Hour Thornton Company Vernon Company Predetermined overhead rate

Thornton Company and Vernon Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Thornton Vernon Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Company $206,350 29,000 Company $248,350 23,000 19,500 $ 30,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) Per Direct Labor Hour Thornton Company Vernon Company Predetermined overhead rate

FINANCIAL ACCOUNTING
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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Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers the tabs below. Required A Required B Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Adjusting Entry for Thornton Company: Manufacturing Overhead Cost of Goods Sold Adjusting Entry for Vernon Company: Manufacturing Overhead Cost of Goods Sold < Required A Required B>
Transcribed Image Text:Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers the tabs below. Required A Required B Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Adjusting Entry for Thornton Company: Manufacturing Overhead Cost of Goods Sold Adjusting Entry for Vernon Company: Manufacturing Overhead Cost of Goods Sold < Required A Required B>
Thornton Company and Vernon Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Thornton Vernon Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Company $206,350 29,000 Company $248,350 23,000 19,500 $ 30,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) Per Direct Labor Hour Thornton Company Vernon Company Predetermined overhead rate
Transcribed Image Text:Thornton Company and Vernon Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Thornton Vernon Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Company $206,350 29,000 Company $248,350 23,000 19,500 $ 30,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) Per Direct Labor Hour Thornton Company Vernon Company Predetermined overhead rate
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