Question: HOW TO SOLVE A,B,C,D, showing work Manufacturing overhead-over/underapplied Creative Lighting Inc: makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor

 HOW TO SOLVE A,B,C,D, showing work Manufacturing overhead-over/underapplied Creative Lighting Inc:

HOW TO SOLVE A,B,C,D, showing work

Manufacturing overhead-over/underapplied Creative Lighting Inc: makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company's fiscal year. $110.880 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of $12 per direct labor hour. Required: a. Calculate the number of hours of direct labor used during June. b. Actual manufacturing overhead costs incurred during June totaled $106,680. Calculate the amount of over- or underapplied overhead for June. c. Identify two possible explanations for the over-or underapplied overhead. d. Explain the accounting appropriate for the over-or underapplied overhead at the end of June

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!