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Rivera Company applies manufacturing overhead to jobs on the basis of direct labor cost. Overhead costs are expected (budgeted) to total $240,000 for the year,
Rivera Company applies manufacturing overhead to jobs on the basis of direct labor cost. Overhead costs are expected (budgeted) to total $240,000 for the year, and direct labor cost is estimated at $240,000. For the year, $185,000 of overhead costs are incurred and the actual direct labor cost was $210,000.
Assuming the under - or overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of goods sold:
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