During June, XYZ Company incurred OMR 90,000 of actual Manufacturing Overhead and actual labor hours were 15,000. During the same period, the Manufacturing Overhead was estimated to be OMR 95,000 for the period along with 20,000 direct labor hours. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a: O a. debit to Manufacturing Overhead of OMR 95,000 O b. credit to Manufacturing Overhead of OMR 90,000 O c. debit to Work in Process of OMR 71,250 O d. credit to Work in Process of OMR 71,250 O e. None of the given answer is correct

During June, XYZ Company incurred OMR 90,000 of actual Manufacturing Overhead and actual labor hours were 15,000. During the same period, the Manufacturing Overhead was estimated to be OMR 95,000 for the period along with 20,000 direct labor hours. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a: O a. debit to Manufacturing Overhead of OMR 95,000 O b. credit to Manufacturing Overhead of OMR 90,000 O c. debit to Work in Process of OMR 71,250 O d. credit to Work in Process of OMR 71,250 O e. None of the given answer is correct

Name: During June, XYZ Company incurred OMR 90,000 of actual Manufacturing
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Description: During June, XYZ Company incurred OMR 90,000 of actual Manufacturing Overhead and actuallabor hours were 15,000. During the same period, the Manufacturing Overhead was estimated to beOMR 95,000 for the period along with 20,000 direct labor hours. Th

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...

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Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
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A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600
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On December 1, Carmel Valley Production Inc. had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow: During December the following transactions occurred: a. Purchased materials costing 50,000 on account. b. Placed direct materials costing 49,000 into production. c. Incurred production wages totaling 50,500. d. Incurred overhead costs for December: e. Applied overhead to work in process at a predetermined rate of 125% of direct labor cost. f. Completed and transferred 10,000 units to finished goods. (Hint: You should first compute equivalent units and unit costs. The unit cost should include applied, not actual, factory overhead.) Carmel Valley uses the weighted average cost method. The ending inventory of work in process consisted of 1,000 units that were completed as to materials and 25% complete as to labor and overhead. Required: Prepare the journal entries to record the above December transactions.
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Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?