Refer to the data for the preceding exercise for Aquarius
Refer to the data for the preceding exercise for Aquarius Hotel Supply Company. Prepare a journal entry to add to work-in-process inventory the total manufacturing overhead cost for the year, assuming:
In the preceding exercise
Budgeted sales revenue.................................................................$945,000
Budgeted manufacturing overhead............................................... 650,000
Budgeted machine hours (based on practical capacity)................ 20,000
Budgeted direct-labor hours (based on practical capacity)........... 25,000
Budgeted direct-labor rate per hour.............................................. 13
Actual manufacturing overhead.................................................... 690,000
Actual machine hours.................................................................... 22,000
Actual direct-labor hours............................................................... 26,000
Actual direct-labor rate per hour................................................... 14

1. The firm uses actual costing.
2. The firm uses normal costing, with a predetermined overhead rate based on machine hours.

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