Question
Train Company uses a job order cost system and applied overhead based on estimated rates for work in their factory. The overhead application rate is
Train Company uses a job order cost system and applied overhead based on estimated rates for work in their factory. The overhead application rate is based on total estimated overhead costs of $200,000 and direct labor hours of 50,000. For job 836, direct labor hours were 810 for the month of December. What was the appropriate journal entry for job 836 for the month of December?
a. none of these
b. factory overhead should be credited $3,240
c. factory overhead should be credited $3,200
d. job overhead expense should be credited for $200
e. Job overhead expense should be debited for $200
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