The Glass Works is in the process of determining manufacturing overhead. Each event below needs to be journalized to Manufacturing Overhead, Miscellaneous Expense, or allocated between the two as appropriate. All items were paid in cash at the time of acquisition.
(a) Glass Works purchases an insurance policy for $1,000.00. It is computed that 70% of the value of the policy protects production the balance protects the administrative offices.
(b) The electric bill is received showing an amount due of $1,200.00. This meter is utilized only by production as the office spaces have their own meter.
(c) Payroll reports that the sales manager's salary for the period is $2,500.00 and that production supervisors wages for the period are $4,500.00.
(d) The stockroom reports that $975.00 in materials were purchased for the production maintenance department.
(e) If the driver for the application of overhead is drop-forge strokes and there are expected to be 1,000 strokes in this period, what is the rate per stroke?
(f) Assuming that there are 975 drop-forge strokes in this period, apply manufacturing overhead to Work in Process.