Question

The T-account showing the manufacturing overhead activity for Alfred Corp. for 2020 shows a debit of $195,000 and a credit of $203,000. When answering the three questions below, enter your answer using only numeric amounts (unless otherwise directed), rounded to the nearest dollar (no dollar signs and no commas). What is the actual manufacturing overhead

Answer 1

Answer: $195000

Explanation:

The actual manufacturing overhead refers to the true costs which are incurred during production and this include factory supplies used, indirect materials, insurance, depreciation, factory taxes, etc.

Here, the debit of $195,000 is the actual manufacturing overhead while the credit of $203000 is the allocated manufacturing overhead.