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Determine and Use Overhead Rate Cortez Consulting, Inc., expects the following costs and expenses during the coming year: Direct labor (@ $27./hr.) $243,000 Sales commissions
Determine and Use Overhead Rate Cortez Consulting, Inc., expects the following costs and expenses during the coming year:
Direct labor (@ $27./hr.) | $243,000 |
Sales commissions | 55,500 |
Overhead | 216,000 |
a. Compute a predetermined overhead rate applied on the basis of direct labor hours.
Round to two decimal places, if applicable.
$Answer
b. Prepare a general journal entry to apply overhead during an interim period when 2,250 direct labor hours were worked.
General Journal | ||
---|---|---|
Description | Debit | Credit |
AnswerConsulting overheadCost of goods soldFinished goods inventoryWork in process inventory | Answer | Answer |
AnswerConsulting overheadCost of goods soldFinished goods inventoryWork in process inventory | Answer | Answer |
c. What amount of overhead would be assigned to Job 466, to which $270 in direct labor had been charged?
Round to two decimal places, if applicable.
$Answer
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