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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. $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

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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Current Attempt in Progress 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 eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer
Transcribed Image Text:Current Attempt in Progress 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 eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer
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