15. A proper journal entry to close overapplied manufacturing overhead to Cost o

Question

15. A proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be: A) Cost of Goods Sold Work in Process Cost of Goods Sold B) Manufacturing Overhead C) Cost of Goods Sold Finished Goods D) Manufacturing Overhead Cost of Goods Sold A. Option A B. Option B C. Option C D. Option D 16. Which of the following is the correct formula to compute the predetermined overhead rate? A. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. B. Estimated total manufacturing overhead costs divided by estimated total units in the allocation C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base D. Estimated total manufacturing overhead costs divided by actual total units in the allocation base 17. Daguio Corporation uses direct labor-hours in its predetermined overhead raite. Ai the g of the year, the total estimated manufacturing overhead was $224,580. At the end of overhead for the year was underapplied by $12,100, and the actual manufacturing overbead was $219,580 The predetermined overhead rate for the year must have been closest to A. $11.40 per direct labor hour B. $12.34 per direct labor hour C. $12.06 per direct labor hour D $10.53 per direct labor hour Ya-b

Explanation / Answer

15. Option D.

i.e Manufacturing overhead

To Cost of goods sold

{Because earlier when overheads were charged to goods then cost of goods sold a/c would have been debited. Now we need to reverse the same.}

16. Option B.

I.e Estimated total overheads divided by estimated total units in the allocation base.

{Since we need to determine the predetermined overhead rate "estimated" data has to be taken and to compute rate =cost/units}

17. Option A. $11.40 per direct labour hour

Actual manufacturing overhead= $219580

Underapplied=$12100

If 18200 direct labours were applied, then manufacturing overhead that have been applied =$219580-$12100=$207480

And rate=$207480/18200hrs=$11.40 per direct labour hour

Do give your feedback!! Happy Learning :)

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.