ABC Company listed the following data for 20XX: Budgeted factory overhead $ 1,04
ID: 341739 • Letter: A
Question
ABC Company listed the following data for 20XX:
Budgeted factory overhead $ 1,044,000
Budgeted direct labor hours 72,000
Budgeted machine hours 24,000
Actual factory overhead 1,037,400
Actual direct labor hours 72,600
Actual machine hours 23,600
Assuming ABC Company applied overhead based on direct labor hours, the company's predetermined overhead rate is:
$ 43.50 per direct labor
$ 24.38 per direct labor
$ 44.24 per direct labor
$ 14.50 per direct labor
ssuming ABC Company applied overhead based on machine hours, the company's predetermined overhead rate is:
$ 43.50
$ 14.38
$ 44.24
$ 14.50
Assuming ABC Company applied overhead based on direct labor hours, the overapplied / underapplied overhead is:
$ 15,300 underapplied
$ 15,300 overapplied
$ 10,800 underapplied
$ 10,800 overapplied
Assuming ABC Company applied overhead based on machine hours, the overapplied / underapplied overhead is:
$ 15,300 underapplied
$ 15,300 overapplied
$ 10,800 underapplied
$ 10,800 overapplied
Assuming ABC Company applied overhead based on direct labor hours, the journal entry to adjust overapplied / underapplied overhead would include a credit to:
work in process inventory
cost of goods sold
finished goods inventory
factory overhead control
Assuming ABC Company applied overhead based on machine hours, the journal entry to adjust overapplied / underapplied overhead would include a debit to:
work in process inventory
cost of goods sold
finished goods inventory
factory overhead control
Assuming ABC Company applied overhead based on direct labor hours, the journal entry's effect on income would:
reduce income to the correct amount
increase income to the correct amount
have no effect on income
understate revenue
Assuming ABC Company applied overhead based on machine hours, the journal entry would:
reduce income to the correct amount
increase income to the correct amount
have no effect on income
understate revenue
a.$ 43.50 per direct labor
b.$ 24.38 per direct labor
c.$ 44.24 per direct labor
d.$ 14.50 per direct labor
ssuming ABC Company applied overhead based on machine hours, the company's predetermined overhead rate is:
a.$ 43.50
b.$ 14.38
c.$ 44.24
d.$ 14.50
Assuming ABC Company applied overhead based on direct labor hours, the overapplied / underapplied overhead is:
a.$ 15,300 underapplied
b.$ 15,300 overapplied
c.$ 10,800 underapplied
d.$ 10,800 overapplied
Assuming ABC Company applied overhead based on machine hours, the overapplied / underapplied overhead is:
a.$ 15,300 underapplied
b.$ 15,300 overapplied
c.$ 10,800 underapplied
d.$ 10,800 overapplied
Assuming ABC Company applied overhead based on direct labor hours, the journal entry to adjust overapplied / underapplied overhead would include a credit to:
a.work in process inventory
b.cost of goods sold
c.finished goods inventory
d.factory overhead control
Assuming ABC Company applied overhead based on machine hours, the journal entry to adjust overapplied / underapplied overhead would include a debit to:
a.work in process inventory
b.cost of goods sold
c.finished goods inventory
d.factory overhead control
Assuming ABC Company applied overhead based on direct labor hours, the journal entry's effect on income would:
a.reduce income to the correct amount
b.increase income to the correct amount
c.have no effect on income
d.understate revenue
Assuming ABC Company applied overhead based on machine hours, the journal entry would:
a.reduce income to the correct amount
b.increase income to the correct amount
c.have no effect on income
d.understate revenue
Explanation / Answer
As per chegg guidelines we answer maximum 4 parts per question per post Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount d. $ 14.50 per direct labor Budgeted factory overhead 1,044,000.00 Budgeted direct labor hours 72,000.00 predetermined overhead rate = 1044,000/72,000 14.50 a. $ 43.50 Budgeted factory overhead 1,044,000.00 Budgeted machine hours 24,000.00 predetermined overhead rate = 1044,000/24000 43.50 a. $ 15,300 underapplied Actual direct labor hours 72,600.00 Applied overhead 72600*14.50 1,052,700.00 Actual factory overhead 1,037,400.00 Overapplied overhead 15,300.00 c. $ 10,800 underapplied Actual machine hours 23,600.00 Applied overhead 23600*43.50 1,026,600.00 Actual factory overhead 1,037,400.00 Underapplied overhead (10,800.00)