Harp music corporation manufactures violins, violas, cellos, and fiddles and uses a job-order costing system. The Manufacturing Overhead account is the Harp debit when the production manager has earned her salary.
This is further explained below.
Generally, The cost of manufacturing overhead, often known as MOH, is the aggregate of all the indirect expenses that are spent throughout the process of making a product.
Along with the expenses of direct materials and direct labor, it is included in the total cost of the finished product.
In conclusion, A work costing system is used in the production of stringed instruments by Harp Music Corporation, which includes violins, violas, clarinets, and fiddles. So when the project manager has received her wage, the Manufacturing Overhead account becomes negative in the Harp accounting system.
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