Krispin Corporation had the following factory overhead costs during June 2020: Indirect materials ...............$48,000 Indirect labor .......................75,000
Question:
Krispin Corporation had the following factory overhead costs during June 2020:
Indirect materials ...............$48,000
Indirect labor .......................75,000
Factory depreciation ............32,000
Factory utilities ....................21,000
Factory insurance ................14,000
Factory property taxes .......12,000
During June, a total of 40,000 machine hours were used.
INSTRUCTIONS
A. Compute the actual overhead rate for June.
B. Give the general journal entry to record the actual overhead costs for June (assume the utiities, insurance, and property taxes are paid in cash). (general journal)
C. Based on your rate, compute the total overhead cost to be applied to production in June.
D. Give the journal entry to record the applied overhead costs for June.(general journal)
E. If one of the units produced during June required 5,400 machine hours, hours, what amount of overhead cost will be applied to that unit?
F. Do you expect the July actual overhead rate to be the same as the June rate? Explain
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso