A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $357,800 and direct labor hours would be 47,300. Actual manufacturing overhead costs incurred were $306,900, and actual direct labor hours were 52,100. The entry to apply the factory overhead costs for the year would include a a.credit to Factory Overhead for $393,876 b.debit to Factory Overhead for $306,900 c.debit to Factory Overhead for $393,876 d.credit to Factory Overhead for $357,800     The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments—Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Labor HoursPer Unit Machine HoursPer Unit   Rings 960 4 3   Dings 2,050 7 9 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $89,500. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $72,300. The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours. What is the Fabrication Department overhead rate per machine hour? a.$4.20 b.$4.48 c.$4.89 d.$3.97

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
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A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $357,800 and direct labor hours would be 47,300. Actual manufacturing overhead costs incurred were $306,900, and actual direct labor hours were 52,100. The entry to apply the factory overhead costs for the year would include a

a.credit to Factory Overhead for $393,876
b.debit to Factory Overhead for $306,900
c.debit to Factory Overhead for $393,876
d.credit to Factory Overhead for $357,800
 
 

The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments—Fabrication and Assembly. Data for the products and departments are listed below.


Product
Number of
Units
Labor Hours
Per Unit
Machine Hours
Per Unit
  Rings 960 4 3
  Dings 2,050 7 9

All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $89,500. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $72,300.

The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours.

What is the Fabrication Department overhead rate per machine hour?

a.$4.20
b.$4.48
c.$4.89
d.$3.97
 
 
 
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