Melinda, Inc estimates manufacturing overhead costs for the coming year at $225,000, which will be allocated based on direct labor hours
Melinda estimates 9,000 direct labor hours for the coming year. In January, Job A33 was completed, which required 8 direct labor hours and 34 machine hours. Provide the journal entry to allocate manufacturing overhead to the job.
What will be an ideal response
Work-in-Process Inventory 200
Manufacturing Overhead 200
Estimated manufacturing overhead costs $225,000
Estimated direct labor hours 9,000 hours
Predetermined overhead allocation rate ($225,000 / 9,000 hours) $25
Number of direct labor hours worked on Job A33 8 hours
Allocated manufacturing overhead ($25 x 8 hours) $200
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