5) On March 31, 2017, Alpha Corporation recorded the following factory overhead

Question

5) On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred: Factory Manager Salary $6,000 Factory Utilities 2,500 Machinery Deprecation 10,000 Machinery Repairs 2,000 Factory Insurance (prepaid) 1,000 The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,200 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entry for the adjusting entry to dispose of any over or under application of factory overhead. (round any final dollar answers to the nearest whole dollar)

General Journal:

Date

Accounts

Debit

Credit

3/31/17

Date

Accounts

Debit

Credit

3/31/17

Explanation / Answer

Actual overhead = 6000+2500+10000+2000+1000= 21500 Applied overhead = (7200+3000)*2.1= 21420 3/31/17 Cost of goods sold 80 =21500-21420         Factory overhead 80

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

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