Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. $1,000,000 $1,062,800 Estimated overhead Actual overhead Estimated decorator hours 40,000 Actual decorator hours 42,000 The company uses the account Operating Overhead in place of Manufacturing Overhead and the account Service Contracts in Process in place of Work in Process. Your answer is correct
Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. $1,000,000 $1,062,800 Estimated overhead Actual overhead Estimated decorator hours 40,000 Actual decorator hours 42,000 The company uses the account Operating Overhead in place of Manufacturing Overhead and the account Service Contracts in Process in place of Work in Process. Your answer is correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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I did this but I don't know why some of them are wrong. Can you please correct it?
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Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is
treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data
for the current year.
Estimated overhead
Actual overhead
$1,000,000
$1,062,800
40,000
Estimated decorator hours
Actual decorator hours
42,000
The company uses the account Operating Overhead in place of Manufacturing Overhead and the account Service Contracts in
Process in place of Work in Process.
Your answer is correct.
Compute the predetermined overhead rate.
Predetermined overhead rate
2$
25
per decorator hour
eTextbook and Media
Your answer is partially correct.
Prepare the entry to apply the overhead for the year. (Credit account titles are automatically indented when amount is entered. Do
not indent manually.)
Account Titles and Explanation
Debit
Credit
Work in Process Inventory
1050000
Operating Overhead
1050000
eTextbook and Media
Your answer is correct.
Determine whether the overhead was under- or overapplied and by how much.
Overhead
12800 i
Underapplied
V
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