Irmas Interiors uses a job order costing system to collect the costs of its interior decorating business.
Question:
Budgeted overhead ..... $960,000
Actual overhead ....... $982,800
Budgeted decorator hours .... 40,000
Actual decorator hours .... 40,500
The company uses Operating Overhead in place of Manufacturing Overhead.
Instructions
(a) Compute the predetermined overhead rate.
(b) Prepare the entry to apply the overhead for the year.
(c) Determine whether the overhead was under- or overapplied and by how much.
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Step by Step Answer:
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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