Overhead: Overheads are the cost and the expenses a company incurs of the production of a particular goods or services which are not directly related to the production. It does not include labor and direct material. Direct Labor Cost: Direct labor cost is the cost that a company incurs in giving wages to the people that are directly associated with the production work. Journal Entries : Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order. Accounting rules for journal entries : To increase balance of the account : Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To decrease balance of the account : Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. 1. To compute : The predetermined overhead rate for 2017.

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Answer 1

Question

Chapter 2, Problem 15E

To determine

Overhead:

Overheads are the cost and the expenses a company incurs of the production of a particular goods or services which are not directly related to the production. It does not include labor and direct material.

Direct Labor Cost:

Direct labor cost is the cost that a company incurs in giving wages to the people that are directly associated with the production work.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To compute: The predetermined overhead rate for 2017.

2.

To determine

To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)

3.

To determine

The overhead is over applied or under applied.

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General Accounting Question

Which of the following statements concerning standards is correct? A. Standards cannot be used for product costing and cash budgeting. B. Standards should not be attainable by the average worker. C. Variances are likely when compared to actual results. D. All of the above. E. None of these.

Answer 2

Question

Chapter 2, Problem 15E

To determine

Overhead:

Overheads are the cost and the expenses a company incurs of the production of a particular goods or services which are not directly related to the production. It does not include labor and direct material.

Direct Labor Cost:

Direct labor cost is the cost that a company incurs in giving wages to the people that are directly associated with the production work.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To compute: The predetermined overhead rate for 2017.

2.

To determine

To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)

3.

To determine

The overhead is over applied or under applied.

Expert Solution & Answer

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Answer 3

Question

Chapter 2, Problem 15E

To determine

Overhead:

Overheads are the cost and the expenses a company incurs of the production of a particular goods or services which are not directly related to the production. It does not include labor and direct material.

Direct Labor Cost:

Direct labor cost is the cost that a company incurs in giving wages to the people that are directly associated with the production work.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To compute: The predetermined overhead rate for 2017.

2.

To determine

To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)

3.

To determine

The overhead is over applied or under applied.

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Answer 4

Question

Chapter 2, Problem 15E

To determine

Overhead:

Overheads are the cost and the expenses a company incurs of the production of a particular goods or services which are not directly related to the production. It does not include labor and direct material.

Direct Labor Cost:

Direct labor cost is the cost that a company incurs in giving wages to the people that are directly associated with the production work.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To compute: The predetermined overhead rate for 2017.

2.

To determine

To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)

3.

To determine

The overhead is over applied or under applied.

Expert Solution & Answer

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Answer 5

Chapter 2, Problem 15E

To determine

Overhead:

Overheads are the cost and the expenses a company incurs of the production of a particular goods or services which are not directly related to the production. It does not include labor and direct material.

Direct Labor Cost:

Direct labor cost is the cost that a company incurs in giving wages to the people that are directly associated with the production work.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To compute: The predetermined overhead rate for 2017.

2.

To determine

To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)

3.

To determine

The overhead is over applied or under applied.

Answer 6

Chapter 2, Problem 15E

To determine

Overhead:

Overheads are the cost and the expenses a company incurs of the production of a particular goods or services which are not directly related to the production. It does not include labor and direct material.

Direct Labor Cost:

Direct labor cost is the cost that a company incurs in giving wages to the people that are directly associated with the production work.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To compute: The predetermined overhead rate for 2017.

Answer 7

Chapter 2, Problem 15E

To determine

Overhead:

Overheads are the cost and the expenses a company incurs of the production of a particular goods or services which are not directly related to the production. It does not include labor and direct material.

Direct Labor Cost:

Direct labor cost is the cost that a company incurs in giving wages to the people that are directly associated with the production work.

Journal Entries:

Journal entries are the entries that are made in the books of accounts to record every transaction that happens in the business in the chronological order.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

1.

To compute: The predetermined overhead rate for 2017.

Answer 8

2.

To determine

To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)

Answer 9

2.

To determine

To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)

Answer 10

3.

To determine

The overhead is over applied or under applied.

Answer 11

3.

To determine

The overhead is over applied or under applied.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 2 - Prob. 1MCQ Ch. 2 - A company uses direct labor costs to apply...Ch. 2 - Prob. 3MCQ Ch. 2 - Prob. 4MCQ Ch. 2 - Prob. 5MCQ Ch. 2 - Prob. 1DQ Ch. 2 - Some companies use labor cost to apply factory...Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ

Factory Overhead
Date	Particular	Debit ($)	Date	Particular	Credit ($)
	Balance b/f	830,000		Applied overhead	822,00
				Balance c/f	8,000
		830,000			830,000
Table (1)

Concept explainers

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To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)

The overhead is over applied or under applied.

Want to see the full answer?

Chapter 2 Solutions

Concept explainers

Videos

To prepare: T account for factory overhead. Factory Overhead Date Particular Debit ($) Date Particular Credit ($) Balance b/f 830,000 Applied overhead 822,00 Balance c/f 8,000 830,000 830,000 Table (1)

The overhead is over applied or under applied.

Want to see the full answer?

Chapter 2 Solutions

To prepare: T account for factory overhead.

Factory Overhead
Date Particular Debit ($) Date Particular Credit ($)
Balance b/f 830,000 Applied overhead 822,00
Balance c/f 8,000
830,000 830,000
Table (1)