At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct
Question:
By the end of the year, 18,100 direct labor hours had actually been worked, and Smith incurred the following actual overhead costs for the year:
Equipment lease ........... $ 6,800
Depreciation on building ........ 19,340
Indirect labor ........... 90,400
Utilities .............. 14,560
Other overhead .......... 41,400
Required:
1. Calculate the overhead rate for the year.
2. Calculate the total cost of Job K456.
3. Prepare the journal entries to record actual overhead and to apply overhead to production for the year.
4. Is overhead overapplied or underapplied? By how much?
5. Assuming that the normal cost of goods sold for the year is $635,600, what is the adjusted cost of goods sold?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Question Posted: