Clover Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine hours. The following data pertain to one month's operations:
Standard machine hours allowed for actual production: 3,550 MH
Actual machine hours for the month: 4,000 MH
Actual variable manufacturing overhead costs incurred: $ 80,000
Variable overhead spending variance: $ 5,450 Unfavorable
What is variable overhead rate variance?
A. S 9,450.00 unfavorable
B. S9,450.00 favorable
C. 4,000.00 unfavorable
D. 4,000.00 favorable
E. Not determinable

Answers

Answer 1

Answer:

D. 4,000.00 favorable

Explanation:

The formula for variable overhead spending variance provided below gives a clue on deriving the correct option.

variable overhead spending variance=actual variable spending  overhead-budgeted variable spending overhead.

$5450=$ 80,000-budgeted variable spending overhead

budgeted variable spending overhead=$80,000-$5450=$74550

standard overhead rate=budgeted variable spending overhead/Standard machine hours allowed for actual production

standard overhead rate=$74550 /3550=$21

variable overhead rate variance=( standard rate* Actual machine hrs)-(actual rate*Actual machine hrs)

actual rate=Actual variable manufacturing overhead costs incurred/Actual machine hours for the month=$80,000/4000=$20

variable overhead rate variance=($21*4000)-($20*4000)=$4000(favorable since actual is lower than standard,hence, cost savings)


Related Questions

who want to do 1v1 lol with me

Answers

On what lol ? I’m curious but yeah sure

Answer:

nnm,v xcmnm,bkljmbihutjhuF

Explanation:

Which business is exempt from using the accrual basis for accounting? A clothing manufacturer that has average gross annual receipts of $35 million over the last three years. An online retailer that has average gross annual receipts of $45 million over the last three years. A construction contractor who does not have any outstanding accounts receivable at the end of the tax year. A home improvement store that just began business last year and had $2.7 million in gross receipts.

Answers

Answer:

A home improvement store that just began business last year and had $2.7 million in gross receipts.

Explanation:

The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:

Partnership or C corporation with less than $5 million in total sales revenue per yearSole proprietorship or S corporation with less than $1 million in total sales revenueCannot be a publicly traded corporationPersonal service businesses with more than 95% of revenue specifically related to services. Family owned farms with total annual sales revenue less than $25 million.

Which describes a type of tax that people pay on more they earn?

A. Flat tax
B. Income tax
C. Purchase tax
D. Progressive tax

Answers

D progressive tax is the correct answer

A notary signing agent has been providing signing services with no incidents for over 10 years without undergone a background screning . Therefore. he or she

Answers

Answer:

Explanation:

Notary

On January 1, Year 1, Lowing Company acquired a patent from Generics Research Corporation for $3 million. The legal life of the patent is 20 years, but Lowing expects to use it for 5 years. Pawson Company has committed to purchase the patent from Lowing for $500,000 at the end of that 5-year period. Lowing uses the straight-line method to amortize intangible assets with finite useful lives. What is the amount of amortization expense each year

Answers

Answer:

patent amortization expense per year = $500,000 per year

Explanation:

patent amortization expense per year = depreciable value / useful life of the intangible asset

depreciable value = purchase cost - salvage value = $3,000,000 - $500,000 = $2,500,000useful life of the patent = 5 years (the legal life is different than the useful life)

patent amortization expense per year = $2,500,000 / 5 years = $500,000 per year

Can we get this to 20 Answers?

Answers

Answer:

what is your question ? tell me in the comments plz

Explanation:

you can't even be able to describe the brainly community.
its like we're nice...
but then again we're toxic as helI.
DangGGG

Answers

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Assume that Clark Electronics has a monopoly in the production and sale of a new device for detecting and destroying a computer virus. Clark Electronics currently incurs short-run losses, but it continues to operate.
a. What must be true for Clark to continue to operate in the short run?
b. Draw a correctly labeled graph, and show each of the following for Clark.
i. The profit-maximizing price and output
ii. Area of loss
C. Assume Clark is maximizing profit. What will happen to its total revenue if Clark raises its price? Explain.
d. If demand for the new device increases, explain what will happen to each of the following in the short run.
i. Profit-maximizing output
ii. Total cost

Answers

Solution :

c. MC=MR is the profit maximizing equilibrium point. The price rise beyond that is likely to raise the total revenue. But the total cost might increase equally or more then that to nullify or decrease the profit.

d. (i). The demand increase implies that the AR (demand) curve shifts rightwards. This will increase the equilibrium price.

(ii). Change in demand does not affect the total cost.

a. Monopoly might continue to produce in short earn even if its AR < AC. It continues to do so until shut down point. It refers that production continued until average revenue (AR) is greater than equal to the average variable cost (AVC). The monopoly is a market with a single seller.

This market's average revenue (AR) demand curve is above its marginal curve . The curves are downward sloping, illustrating price demand inverse relationship.

Equilibrium quantity : when the marginal revenue = marginal cost

Equilibrium price : equilibrium quantity corresponding price at AR (demand ) curve.

 

Budgeting, ethics, pharmaceutical company. Chris Jackson was recently promoted to Controller of Research and Development for BrisC or, a Fortune 500 pharmaceutical company that manufactures prescription drugs and nutritional supplements. The company’s total R&amp ; D cost for 2017 was expected (budgeted) to be $5 billion. During the company’s midyear budget review, Chris realized that current R&amp ; D expenditures were already at $3.5 billion, nearly 40% above the midyear target. At this current rate of expenditure, the R&amp ; D division was on track to exceed its total year-end budget by $2 billion!
In a meeting with CFO Ronald Meece later that day, Jackson delivered the bad news. Meece was both shocked and outraged that the R&D spending had gotten out of control. Meece wasn’t any more understanding when Jackson revealed that the excess cost was entirely related to research and development of a new drug, Vyacon, which was expected to go to market next year. The new drug would result in large profits for BrisCor, if the product could be approved by year-end. Meece had already announced his expectations of third-quarter earnings to Wall Street analysts. If the R&D expenditures weren’t reduced by the end of the third quarter, Meece was certain that the targets he had announced publicly would be missed and the company’s stock price would tumble. Meece instructed Jackson to make up the budget shortfall by the end of the third quarter using "whatever means necessary." Jackson was new to the controller’s position and wanted to make sure that Meece’s orders were followed. Jackson came up with the following ideas for making the third-quarter budgeted targets:
1. Stop all research and development efforts on the drug Vyacon until after year-end. This change would delay the drug going to market by at least 6 months. It is possible that in the meantime a BrisCor competitor could make it to market with a similar drug.
2. Sell off rights to the drug Martek. The company had not planned on doing this because, under current market conditions, it would get less than fair value. It would, however, result in a one-time gain that could offset the budget shortfall. Of course, all future profits from Martek would be lost. Capitalize some of the company’s R&D expenditures, reducing R&D expense on the income statement. This transaction would not be in accordance with GAAP, but Jackson thought it was justifiable because the Vyacon drug was going to market early next year. Jackson would argue that capitalizing R&D costs this year and expensing them next year would better match revenues and expenses.
3. Referring to the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management,"
4. Which of the preceding items are acceptable to use? Which are unacceptable? What would you recommend Jackson do?

Answers

Answer:

BrisCor

Budgeting, ethics, pharmaceutical company

a. Referring to the "Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management,"

none of the preceding items are acceptable to use.

b. I would recommend Jackson to go ahead with the R&D throughout the year to ensure that the drug Vyacon was successfully brought to the market next year before the competitor.  He can try to keep to the budget going forward.  A budget remains a budget and not the actual.  Budget overrun can result.  What is important is its effectiveness in achieving business goals.

Explanation:

The announced expectations of third-quarter earnings to Wall Street analysts should not prevent the R&D on the drug Vyacon from continuing, provided Jackson is certain that the envisaged success would be attained.  They remain expectations.  They are not the actual results of operations for the year. Even if the company's stock price would tumble, it would still recover after the drug had received approval and gone to market, raking in large profits.  After all, the projected increase in R&D cost might not result, and the drug Vyacon could be fully developed and ready for the market before year-end, thereby not exceeding its budget.

what are the three basic types of issues that arise in business finance?​

Answers

Answer:

Capital Budgeting, Capital Structure Decisions, and working Capital Management.

Sue invested $5,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $20,000 of debt she is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of the debt resulting in a tax basis of $7,000 and an at-risk amount of $5,000. During the year, ABC LP generated a ($70,000) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount

Answers

Answer:

$2,000

Explanation:

Calculation for How much of the Sue's loss is disallowed due to her tax basis or at-risk amount

Based on the information given we were told that that Sue is been allocated a 10% of the debt which resulted in a tax basis of the amount of $7,000 as well as an at-risk amount of $5,000 which means that the amount that the Sue's loss will be disallowed due to her tax basis Amount or at-risk amount will be calculated as :

Using this formula

Disallowed Sue's loss=Tax basis-At-risk amount

Let plug in the formula

Disallowed Sue's loss=$7,000-$5,000

Disallowed Sue's loss=$2,000

Therefore How much of the Sue's loss is disallowed due to her tax basis or at-risk amount will be $2,000

Corporation is considering permanently shutting down a department that has an annual contribution margin of $32,000 and $64,000 in annual fixed costs. Of the fixed costs, $16,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:________.

Answers

Answer:

an increase of $16,000

Explanation:

Calculation for what The effect of eliminating this department on Fabio's overall net operating income would be

Calculatation of Segment Margin

Contribution Margin 32,000.00

Less Avoidable Fixed Costs( 48,000.00)

(64,000+16,000)

Segment Margin (-$16,000)

Based on the above calculation in a situation where the department was eliminated it means that the company have to eliminate the segment margin department's with negative amount of $16,000 which will lead to the overall net operating income to increase by the amount of $16,000

Therefore The effect of eliminating this department on Fabio's overall net operating income would be:an increase of $16,000

The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks, obtaining these figures.
Week Crew Size Yards Installed
1 4 96
2 3 72
3 4 92
4 2 50
5 3 69
6 2 52
What is the week with the highest labor productivity?

Answers

Answer: Week 6

Explanation:

Labor productivity = Yards installed/ Crew size

Week 1 = 96/4 = 24

Week 2 = 72/3 = 24

Week 3 = 92/4 = 23

Week 4 = 50/2 = 25

Week 5 = 69/3 = 23

Week 6 = 52/2 = 26

Week 6 is highest with 26 yards per crew.

You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an annual return of 9.7 percent

Answers

Answer:

the amount that saved each month is $173.21

Explanation:

The computation of the amount that saved each month is as follows:

Here we use the PMT formula

Given that

NPER = 40 × 12 =  480

PMT = 9.7% ÷ 12 = 0.81%

PV = $0

FV = $1,000,000

The formula is shown below:

= PMT(RATE;NPER;PV;-FV;TYPE)

The future value comes in negative

After applying the above formula, the pmt is $173.21

Hence, the amount that saved each month is $173.21

Felipe died on May 9, 2016. At date of death he owned the following assets:• Cash in the bank: $12,000• ABC Bonds: Fair market value $5,000• Office building: Fair market value, $300,000• Stock in Leck Corporation: Fair market value, $10,000• Personal residence (jointly held with his spouse): Fair market value, $160,000.
In addition, accrued rents on the office building to date of death is $24,000; accrued interest on the bonds at date of death is $200; $400 in dividends are outstanding on the Leck stock (date of record April 30, 2016). Felipe's gross estate is $__________.

Answers

Answer:

$431,600

Explanation:

      Calculation of Gross Estate of Felipe

Items                                                   Amount($)

Cash at bank                                      $12,000

ABC BOND                                         $5,000

Office building                                    $300,000

Stock in Leck Corporation                 $10,000

Personal residence (50% include)    $80,000

Accrued rent on office building        $24,000

Accrued rent on bond                       $200

Outstanding dividend                        $400      

Gross estate                                       $431,600

Sraibn271 Corporation has two divisions: Domestic Division and Foreign Division. Last month, the corporation reported a contribution margin of $46,400 for Domestic Division. Foreign Division had a contribution margin ratio of 35% and its sales were $243,000. Net operating income for the Sraibn271 Corporation was $36,800 and traceable fixed expenses were $51,000.
(ID#19361)
What were Sraibn271 Corporation's common fixed expenses?
a) $131,450
b) $43,650
c) $51,000
d) $94,650

Answers

Answer: b) $43,650

Explanation:

Contribution margin of Domestic division + contribution margin of Foreign division - traceable fixed cost - common fixed cost = Net operating income for company

46,400 + (0.35 * 243,000) - 51,000 - Common = 36,800

80,450 - Common = 36,800

Common = 80,450 - 36,800

= $43,650

Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted)Cost of goods sold $ 30,000 $ 60,000 $ 80,000 $ 50,000 Desired ending inventory levels are 34% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:

Answers

Answer:

Budgeted purchases of inventory in February Year 2 would be $69,800

Explanation:

___________CGS _Ending Inventory_Beginning Inventory _ Purchases

Dec. Year 1 _$30,000 _ $20,400 _____ $0 _____________$0

Jan. Year 2 _$60,000 _$27,200 _____ $20,400_________$66,800

Feb. Year 2 _$80,000_ $17,000 ______$27,200_________$69,800

Use following formula to calculate the Purchases

Cost of Goods sold = Beginning Inventory + Purchases - Ending Inventory

Purchases = Cost of Goods sold - Beginning Inventory + Ending Inventory

Placing value of Jan Year 2

Purchases = $60,000 - $20,400 + $27,200 = $66,800

Placing value of Feb Year 2

Purchases = $80,000 - $27,200 + $17,000 = $69,800

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $29,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Additionally, a $49 check written and recorded by the company correctly, was recorded by the bank as a $94 deduction. The adjusted cash balance per the bank records should be:

Answers

Answer:

The adjusted cash balance per the bank records should be $29,406

Explanation:

Adjusted Balance is the money that a business or individual should have in the bank account assuming all the entries made in the cash book are correct.

As Bank deducted $45 ( $94 - $49 ) more in respect of check written. Check written is a deduction which is made against the payment against the check written.

Balance as per bank statement ___ $29,361

Add: Correction of error ($94 - $49)_$45

Adjusted Cash Balance _________ $29,406

If an economist is a proponent of free trade amongst nations, what would be concerning about the proliferation of regional trade agreements?
A. The nations involved with regional trade agreements make the economies more independent from each other.
B. Regional trade agreements may restrict trade from outside of the regions in the agreement.
C. Terms of regional trade agreements often conflict with agreements of the Anti- Tariff Act.

Answers

Answer: B. Regional trade agreements may restrict trade from outside of the regions in the agreement.

Explanation:

Regional trade agreement is a form of trade agreement usually between two or more countries in a particular region which will allow for easy movement of goods between the borders of that particular region. Examples are North American Free Trade Agreement, European Union etc.

If an economist is a proponent of free trade amongst nations, the economist will be worried that the proliferation of regional trade agreements may restrict trade from outside of the regions in the agreement. This is because there'll only be free trade for the countries that are in that particular region.

Aikman, Inc., manufactures and sells two products: Product O6 and Product O7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:
The direct labor rate is $17.50 per DLH.The direct materials cost per unit for each product is given below:
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The unit product cost of Product O6 is closest to:
A) $637.15 per unit
B) $896.71 per unit
C) $721.00 per unit
D) $661.45 per unit

Answers

Question Completion:

Aikman, Inc., manufactures and sells two products: Product O6 and Product O7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:

                              Expected      DLH         Total DLH

                              Production

Product 06               200            9.00           1,800

Product 07               800           10.00          8,000

Total                      1,000                               9,800

The direct labor rate is $17.50 per DLH.The direct materials cost per unit for each product is given below:

                              Direct Materials

                              Costs / unit

Product 06              $206.50

Product 07              $162.30

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity               Activity        Estimated   Product 06  Product 07     Total

Pool                   Measure      Overhead

Labor-related     DLHs         $133,770         1,800          8,000          9,800

Product orders   Orders          18,501            400             300             700

Order size          MHs             145,180        3,000           3,100          6,100

Total                                     $297,451

Answer:

Aikman, Inc.

The unit product cost of Product O6 is closest to:

B) $896.71 per unit

Explanation:

a) Data and Calculations:

                                       Product 06     Product 07

Direct Materials costs     $206.50          $162.30

Direct labor costs             $157.50          $175.00

Overhead cost per unit   $532.71          $238.64

Total cost per unit           $896.71          $575.94

                                     Product 06     Product 07

Direct labor costs              1,800              8,000

Direct labor rate               $17.50            $17.50

Total labor costs           $31,500             $140,000

Units of products             200                 800

Labor cost per unit       $157.50            $175.00

Overhead cost Allocation   Product 06   Product 07    Total

Labor-related  ($13.65)        $24,570       $109,200    $133,770

Product orders ($26.43)         10,572             7,929        18,501

Order size ($23.80)                71,400            73,780      145,180

Total                                   $106,542        $190,909  $297,451

Production units                     200                 800

Overhead cost per unit      $532.71          $238.64

The 2014 balance sheet of Steelo, Inc., showed current assets of $3,135 and current liabilities of $1,545. The 2015 balance sheet showed current assets of $3,100 and current liabilities of $1,545.
What was the company’s 2015 change in net working capital, or NWC? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.)
Net working capital $

Answers

Answer:

-$35

Explanation:

The computation of the change in net working capital is as follows:

Net working capital = current assets - current liabilities

For 2014,

net working capital i s

= ($3,135 - $1,545)

= $1,590

And,

for 2015,

net working capital is

= ($3,100 - $1,545)

= $1,555

So, the  change in net working capital is

= ($1,555 - $1,590)

= -$35

If a firm is deciding upon the acceptance of a project with a value of $10,000, and if the client has a good credit history, the firm will most likely use the grid chart in the decision-making process.
a) true
b) false

Answers

Answer:

FALSE

Explanation:

The Decision-Making Process includes Identifying the need for a decision, Determining the outcome of the decision, Identifying all alternative actions, the benefits and consequences of each and Making and Evaluating the decision.

Decision-Making Tools includes the use of decision-making grid to differenciate or separates factors of decision to be made, the use of Gantt chart to shows phases of project to completion and Information technology and others.

The grid chart shows the relationship between input and output documents.

When you are posting your résumé online, be sure to adjust it so it is _____.

one page in length
bold
colorful
cyber-safe

Answers

Answer:

I think the answer is one page in length

Explanation:

because when you do a resume you will need to add a length to it beige you post it in.

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and,as a result,her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.A) 10B) 20C) 690D) 700E) None of the above answers is correct.

Answers

Answer:

1077927

Explanation:

*$-$)7794459०२2८जेइकेप्ग्व्व्ज्सोबीओस्क्ब्सु

स्ज्व्ह्जेहेगेओज्स्ज्स ज्श्स्सीज्झ्र्‍क

ok but seriously don't click on the site in the comments...unless you want to

Answers

Answer:

Thanks?

Explanation:

Huh?????????? I don’t understand

On June​ 30, Company issues ​, ​-year bonds payable with at face value of . The bonds are issued at face value and pay interest on June 30 and December 31. Requirements 1. Journalize the issuance of the bonds on June 30. 2. Journalize the semiannual interest payment on December 31. Requirement 1. Journalize the issuance of the bonds on June 30. ​(Record debits​ first, then credits. Select explanations on the last line of the journal​ entry.)

Answers

Answer:

1. Dr Cash​ $ 98,000

Dr Discount on Bonds Payable​ $2,000

Cr Bonds payable $100,000

2. Dr Interest Expense​ $ 4,050

Cr Discount on Bonds Payable​ $50

Cr Cash​ $4,000

Explanation:

1. Preparation of the journal entry for the issuance of the bonds on June 30

Dr Cash​ $ 98,000

( $ 100,000 x 0.98 ​)

Dr Discount on Bonds Payable​ $2,000

($100,000 ​- ​$98,000) ​

Cr Bonds payable $100,000

2. Preparation of the Journal entry to record the semiannual interest payment

Dr Interest Expense​ $ 4,050

($4,000 ​+ ​$50 ​)

Cr Discount on Bonds Payable​ $50

( $2,000 x​ 1/40 )

Cr Cash​ $4,000

($ 100,000 x 8​% x​ 6/12 )

RJ Corporation has provided the following information about one of its inventory items:
Date Transaction
1/1 Beginning Inventory
6/6 Purchase
9/10 Purchase
11/15 Purchase
During the year, RJ sold 3,000 units.
Number of Units 400 800 800 1,200 800
Cost per Unit $3,200 $3,600 $4,000 $4,200
What was ending inventory using the LIFO cost flow assumption under a periodic inventory system?
a. $880,000.
b. $640,000
c. $770,000.
d. $840,000

Answers

Answer:

b. $640,000

Explanation:

The computation of the ending inventory using the periodic inventory system is as follows:

But before that the ending inventory units is

= Beginning inventory units + purchased units - sold units

= 400 + 800 + 1,200 + 800 - 3,000

= 200 units

Now the ending inventory is

= 200 units × $3,200

= $640,000

hence, the ending inventory using the periodic inventory system is $640,000

Therefore the correct option is B

The last five annual dividends for MysteryCorp have been: $1.25, $1.38, $1.49, $1.60, and $1.69. Next year's dividend is expected to be $2. The current stock price is $199 per share. First, calculate the geometric average annual rate of growth based on the historical dividends (taking into account the previous five -- do *not* include next year's expected dividend in this calculation). Your estimate of RE, the cost of equity, is ________%.

Answers

Answer:

Re = 8.79%

Explanation:

annual growth rates:

($1.38 - $1.25) / $1.25 = 0.104

($1.49 - $1.38) / $1.38 = 0.078

($1.60 - $1.49) / $1.49 = 0.074

($1.69 - $1.60) / $1.60 = 0.056

geometric growth rate = ⁴√(1.104 x 1.078 x 1.074 x 1.056) - 1 = ⁴√1.34976 - 1 = 1.0779 - 1 = 0.0779 = 7.79%

P₀ = Div₁ / (Re - g)

$199 = $2 / (Re - 0.0779)

Re - 0.0779 = $2 / $199 = 0.01

Re = 0.01 + 0.0779 = 0.0879 = 8.79%

Which of the following statements about adjustments is correct? Multiple Choice Accrued wages are wages owed, but not yet paid, to employees; the accrued wages will need to be recorded with an adjusting entry that increases expenses. When making an adjustment to recognize supplies used in a period, total assets will not change. Deferral adjustments are used to update amounts that have been previously deferred on the income statement. Depreciation is an example of an accrual adjustment.

Answers

Answer:

The Statement that is correct about adjustments is:

Accrued wages are wages owed, but not yet paid, to employees; the accrued wages will need to be recorded with an adjusting entry that increases expenses.

Explanation:

Unpaid wages are adjusted with a debit to the Wages Expense account, which increases the account, and a credit to the Wages Payable account, which also increases the account by the same amount.  The purpose of this accrual adjustment is to ensure that the amount reported as Wages Expense is the actual expense incurred for Wages, whether actually paid or not, and thus report the accurate net income and liabilities for the period.

Rorry Company uses a job cost system. Overhead was applied to production using a rate of 78 percent of direct labor costs. What is the journal entry when direct labor costs are $18,000

Answers

Answer:

Dr Work in Process Inventory for $14,040

Cr Manufacturing Overhead for $14,040

Explanation:

Based on the information given we were told that the company applied Overhead to production using a rate of 78% of direct labor costs which means that the journal entry when direct labor costs are the amount of $18,000 will be :

Dr Work in Process Inventory for $14,040

Cr Manufacturing Overhead for $14,040

(78%*18,000)

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