Franklin Manufacturing uses a job order costing system that charges overhead to jobs on the basis of direct labor cost. Franklin used the following cost predictions: overhead costs $1,285,750, and direct labor costs of $695,000. At year-end, the company's records show that actual overhead costs for the year are $1,278,800, and actual direct labor costs are $692,000.a. Determine the predetermined overhead rate for the year.b. Compute the amount of overapplied or underapplied overhead.c. Prepare the adjusting entry for over- or underapplied overhead, assuming the amount is immaterial.
What will be an ideal response?
a. $1,285,750/$695,000 = 185%
b. $1,278,800 - ($692,000 * 1.85) = -$1,400 overapplied
| c. | Factory Overhead….…………………………. | 1,400 |
| ? | Cost of Goods Sold….…………………… | 1,400 |
You might also like to view...
When we use our facial expressions to communicate genuine inner feelings, we exhibit ______.
A. representational facial expressions B. presentational facial expressions C. microfacial expressions D. micromomentary expressions
The client-server model can only be applied to ring and star topologies
Indicate whether the statement is true or false
Loretta Inc, a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location
Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure. A) customer B) product C) complex D) distributor E) territorial
Financial statement analysis is used to show how items in a company's financial statements relate to the company's financial performance objectives
Indicate whether the statement is true or false