Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead account has a __________ balance and applied manufacturing overhead is greater than __________ manufacturing overhead.

Select one:

a. debit, actual

b. credit, actual

c. debit, estimated

d. credit, estimated

Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: What predetermined overhead rate would be used in Department A and Department B, respectively?

Select one:

a. 83% and $5

b. 83% and $3

c. 120% and $3

d. 83% and $120

In May, Hervey Inc. incurred $60,000 of direct labor costs and $3,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

Select one:

a. credit to Manufacturing Overhead of $3,000

b. debit to Work in Process of $63,000

c. credit to Work in Process of $63,000

d. debit to Manufacturing Overhead of $3,000