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Corporation manufactures computers. Assume that Fell: bullet allocates manufacturing overhead based on machine hours bullet estimated 9,000 machine hours and $ 90,000 of manufacturing overhead
Corporation manufactures computers. Assume that Fell:
bullet |
allocates manufacturing overhead based on machine hours | |
bullet |
estimated 9,000 |
machine hours and $ 90,000
of manufacturing overhead costs |
bullet |
actually used 13,000 |
machine hours and incurred the following actual costs:
The company allocated manufacturing overhead of $ 130,000 using a predetermined overhead rate of $ 10.00 per machine hour. The total actual manufacturing overhead costs are $ 83,000.What entry would Fell make to adjust the manufacturing overhead account for overallocated or underallocated overhead?
Date | Accounts and Explanation | Debit | Credit |
Cost of Goods Sold | 7,000 | ||
Manufacturing Overhead | 7,000 |
Manufacturing Overhead | 47,000 | ||
Cost of Goods Sold | 47,000 |
Manufacturing Overhead | 7,000 | ||
Cost of Goods Sold | 7,000 |
Cost of Goods Sold | 47,000 | ||
Manufacturing Overhead | 47,000 |
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