Question
At the end of the year, overhead applied was $3,706,000. Actual overhead was $3,418,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net
a. decrease by $576,000
b. decrease by $288,000
c. increase by $288,000
d. increase by $576,000
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $345,800 and direct labor hours would be 42,600. Actual manufacturing overhead costs incurred were $320,800, and actual direct labor hours were 55,000. What is the predetermined overhead rate per direct labor hour?
a.$12.18
b.$6.49
c.$9.74
d.$8.12
In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries?
a. debit Finished Goods—Dept. A; credit Work in Process—Dept. B
b. debit Work in Process—Dept. B; credit Cost of Goods Sold—Dept. A
c. debit Work in Process—Dept. B; credit Work in Process—Dept. A
d. debit Work in Process—Dept. B; credit Finished Goods—Dept. A
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $327,544 and direct labor hours would be 40,943. Actual factory overhead costs incurred were $395,151, and actual direct labor hours were 51,452. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
a. $411,616 overapplied
b. $16,465 underapplied
c. $16,465 overapplied
d. $84,072 underapplied
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