FINANCIAL & MANAGERIAL ACCT. CONNECT
FINANCIAL & MANAGERIAL ACCT. CONNECT
9th Edition
ISBN: 9781266418211
Author: Wild
Publisher: INTER MCG
Question
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Chapter 11, Problem 4QS

a.

To determine

To prepare: Journal entry.

b.

To determine

To prepare: Journal entry.

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Affordable Furniture makes sofas, loveseats, and recliners. The company allocates manufacturing overhead based on direct labor hours. Affordable estimated a total of $1.0 million of manufacturing overhead and 30,000 direct labor hours for the year. Job 310 consists of a batch of 8 recliners.
1. Record the proper journal entry for each transaction. 2. By the end of​ January, was manufacturing overhead overallocated or​ underallocated? By how​ much?
Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $12 (oil, filter, and 15 minutes of employee time). The fixed costs of running the shop are $8,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 4,000 oil changes each month.

Chapter 11 Solutions

FINANCIAL & MANAGERIAL ACCT. CONNECT

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