Fairfield Company’s payroll costs for the most recent month are summarized here:

Question

Fairfield Company’s payroll costs for the most recent month are summarized here:   

1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $30 per direct labor hour. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Journal entry worksheet

Record the application of manufacturing overhead based on $30 per direct labor hour predetermined rate to production.

Note: Enter debits before credits.

Item Description Total Cost Hourly labor wages 790 hours @ $15 per hour 250 hours for Job 101 = $ 3,750 340 hours for Job 102 = 5,100 200 hours for Job 103 = 3,000 $ 11,850 Factory supervision 5,250 Production engineer 7,500 Factory janitorial work 1,200 Selling, general, and administrative salaries 8,300 Total payroll costs $ 34,100

Explanation / Answer

[Overhead applied direct labor hours*predetermined overhead rate

790*30]

Transaction Account title Debit credit 2 Work in process 23700 Manufacturing overhead 23700

[Overhead applied direct labor hours*predetermined overhead rate

790*30]

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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