Exercise 15-13 (Part Level Submission) Tombert Decorating uses a job order cost

Question

Exercise 15-13 (Part Level Submission) Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Estimated overhead$%1,010,000 Actual overhead Estimated decorator hours Actual decorator hours $989,800 40,000 38,900 The company uses Operating Overhead in place of Manufacturing Overhead. Your answer is correct. Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g 25.55%.) Predetermined overhead rate 25.25 per decorator hour

Explanation / Answer

1-

predetermined overhead rate

Estimated overhead / Estimated decorator hours

1010000/40000

25.25

2-

Prepare the entry to apply the overhead for the year

date

explanation

debit

credit

1-

work in progress

982225

manufacturing/ operating overhead

982225

1-

predetermined overhead rate

Estimated overhead / Estimated decorator hours

1010000/40000

25.25

2-

Prepare the entry to apply the overhead for the year

date

explanation

debit

credit

1-

work in progress

982225

manufacturing/ operating overhead

982225

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