The entry to apply overhead results in a ______ to the Factory Overhead account while the entry to record actual overhead results in a ______ to the Factory Overhead account.
credit / debit
debit / debit
Cannot be determined -- it depends on whether overhead is under- or overapplied
debit / credit
26) A company estimates that overhead costs for the next year will be $3,600,000 for indirect labor and $650,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 75,000 machine hours are planned for this next year, how much overhead would be assigned to a product requiring 2.5 machine hours?
$141.67
$120.00
$4,250,250.00
$56.67
27) A manufacturing company's Work-in-Process inventory on January 1 was $178,000; during the year it used $89,000 of direct material costs, incurred $120,000 of direct labor costs, $107,000 of actual overhead and applied $98,000 of overhead costs; the December 31 Work-in-Process inventory was $77,000. What was the cost of goods manufactured for that year (prior to any year-end adjusting entries, if any)?
28) A company's predetermined overhead rate is applied at 75% of direct labor cost. How much overhead would be allocated to Job No. XYZ if it incurred total direct labor costs of $170,000?
29) Based on the following calendar year information:
Advertising expense ………………………………………
$ 38,800
Depreciation of factory equipment………………
43,000
Depreciation of office equipment………………..
10,800
Direct labor………………………………………………….
150,600
Factory utilities………………………………...............
45,650
Rent on factory building………………………………
51,400
Indirect labor……………………………………………….
30,750
Sales commissions………………………………………..
66,500
Interest expense……………………………….............
3,650
Inventories, January 1:
Raw materials……………………………………….
104,450
Work in Process……………………………………
87,250
Finished goods…………………………............
95,600
Inventories, December 31:
Raw materials………………………………………..
82,300
Work in Process…………………………………….
60,700
Finished goods…………………………………….
101,050
Raw materials purchases…………………………..
332,450
If overhead is applied at the rate of 110% of direct labor costs.
Then from the above information, determine:
a) the amount of actual Overhead incurred during the year;
b) the amount of overhead applied during the year;
c) Was overhead for the year under- or over-applied and by how much?
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