Refer to the data for the preceding exercise for Aquarius Hotel Supply Company. Prepare a journal entry
Question:
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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Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
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