Property taxes 15,000 Utilities, factory 25,000 Indirect labor 45,000 Depreciation, factory 12,500 Insurance, factory 4,500 Work in Process Direct Materials 16,000 Direct Labor 20,000 Overhead Overhead is applied to jobs on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $100,000 in manufacturing overhead costs and work 20,000 machine hours. During the year, the company actually worked 21,500 machine hours. 

Prepare the general journal entry to dispose of the under or over-applied overhead cost on the income statement.

Answer rating: 100% (QA)

The overapplied overhead cost is Actual machine hours worked Estimated machine hou... View the full answer