Corporation incurred $69,000 of actual the same pcriod, the Manufacturing Overhe
ID: 2342358 • Letter: C
Question
Corporation incurred $69,000 of actual the same pcriod, the Manufacturing Overhead allocated to Work in Process was $68,000. The journa entry to record the allocation of Manufacturing Overhead to Work in Process would incle a Manufacturing Ovcrhcad costs during October. Durng A. debit to Manufacturing Overhcad of $68,000 t to Manufacturing Overhead of $68,000 C. debit to Work in Process of $69,000 D. credit to Work in Process of S69,000 22. Lucas Industries uses departmental overhead rates to allocate its company has two departments: Assembly and Sanding. The Assembly Department uses a overhead rate of S50 per machine hour, while the Sanding Department uses a departmental per direct labor hour. Job 603 used the following direct labor hours and machine hours in the manufacturing overhead to jobs. The overhead rate of $25 Assembl Department Department Actual results rect labor hours achine hours used The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 603 is $1600 How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? S675 B) $575 C) $700 D) $300 23. Beaver Company manufactures coffee tables and uses an activity-based costing system. Each coffee table consists of 30 separate parts totaling $210 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows: BaseCost Allocation Rate Activity aterials handling $3.00 per part 3.50 per machine hour Number of parts achin Assembling Machine hours Number of parts Number of finished units $6.00 per finished uri $1.00 per ka What is the allocated MOH cost of materials handling per coffee table? s90 B) S30 C) $13 D)S12Explanation / Answer
21. Credit to Manufacturing OH account for $68000 (Option B)
Journal Entry
Debit WIP Account $68000
Credit Manufacturing OH $68000
22. Manufacturing OH allocated
Manufacturing OH allocated = Assembly Department + Sanding Department
Manufacturing OH allocated = $50 * 11 + $25 * 5
Manufacturing OH allocated = $675 Option A
23. Allocated MOH for Material handling = Number of parts * $3 per part
Allocated MOH for Material handling = 30 * $3 per part
Allocated MOH for Material handling = $90 Option A