For Neeraj Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Neeraj incurred $1,000,000 of factory labor costs, of which $850,000 is direct labor and $150,000 is indirect labor. Actual overhead incurred was $1,150,000. Required: Compute the amount of manufacturing overhead applied during the month. Determine the amount of under/over applied manufacturing overhead. Pass the journal entry to record the under/over applied overheads.
For Neeraj Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Neeraj incurred $1,000,000 of factory labor costs, of which $850,000 is direct labor and $150,000 is indirect labor. Actual overhead incurred was $1,150,000. Required: Compute the amount of manufacturing overhead applied during the month. Determine the amount of under/over applied manufacturing overhead. Pass the journal entry to record the under/over applied overheads.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11PA: When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead...
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For Neeraj Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Neeraj incurred $1,000,000 of factory labor costs , of which $850,000 is direct labor and $150,000 is indirect labor. Actual overhead incurred was $1,150,000.
Required:
Compute the amount of manufacturing overhead applied during the month.
Determine the amount of under/over applied manufacturing overhead.
Pass the journal entry to record the under/over applied overheads .
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