Gallagher Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs...
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Gallagher Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $425,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $450,000 of overhead costs are incurred and 130,000 hours are used. Compute the manufacturing overhead rate for the year. Overhead rate per machine hour What is the amount of under - or overapplied overhead at December 31? Overhead Assuming the under - or overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of goods sold. Account Titles and Explanation Debit Credit Gallagher Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $425,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $450,000 of overhead costs are incurred and 130,000 hours are used. Compute the manufacturing overhead rate for the year. Overhead rate per machine hour What is the amount of under - or overapplied overhead at December 31? Overhead Assuming the under - or overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of goods sold. Account Titles and Explanation Debit Credit
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Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
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