Wright Brothers is debating the use of direct labour cost or direct labour hoursas the cost allocation base for allocating manufacturing overhead. The followinginformation is available for the year ended December 31, 2007.Estimated direct labour costActual direct labour costEstimated manufacturing overheadsActual manufacturing overhead costsEstimated direct labour hoursActual direct labour hours$449,500$441,000$359,600$338,000248,000242,000Using direct labour hours as the cost driver, the journal entry to dispose of the manufacturing overheadvariance is: At the beginning of 2012, Conway Manufacturing Company had the following accountbalances:WIP Inventory2,000FG Inventory8,000Manufacturing O/HDuring the year, the following transactions took place:Direct materials placed in production:Direct labor incurred:Manufacturing overhead incurredManufacturing overhead allocated to production: $295,000Cost of Jobs CompletedSelling Price of Jobs SoldCost of Jobs Sold$80,000$190,000$300,000$500,000$750,000$440,000After these transactions have been recorded, the balance in the Work in process account is a:

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Description: Wright Brothers is debating the use of direct labour cost or direct labour hoursas the cost allocation base for allocating manufacturing overhead. The followinginformation is available for the year ended December 31, 2007.Estimated direct labour cos

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Business

Accounting

Using direct labour hours as the cost driver, the journal entry to dispose of the manufacturing overhead variance is:

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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Subject: acounting
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