Question

I have already used a question up and got a wrong answer. Need help please. Need the right entries 1250 is incorrect/

Required information The following inform The following information ätion app to the 0 ins to Trenton Glass Wor Budget Actual direct-labor cost 80000 hours at $1750 per hout Budgeted manufacturing overhead: $997500 Actual selling and administrative expenses 4320 ed direct-labor cost 70,000 hours (practical capecity) at S16per ctual manufact Depreciation Property tax Indirect lab 23000 202,0 31 Insurance 3e200 t hatenialiKsee dáta belon) 95 63 004 pare aiournal ern ead ac st od Round intermedia calculations to 2 decimal places. If no entry is required for a transaction event, select "No journel entry required" in ti account field.)

Answer 1

Solution:

Budgeted overhead rate = Budgeted manufacturing overhead /Budgeted direct labor hours

= $997,500 / 70000 = $14.25 per hour

Manufacturing overhead applied = Actual labor hours * Overhead rate = 80000*$14.25 = $1,140,000

Actual manufacturing overhead incurred = $233,000 + $23,000 + $81,000 + $202,000 + $58,000 + $31,000 + $302,000 + $80,000

= $1,010,000

Over applied overhead = $1,140,000 - $1,010,000 = $130,000

Journal Entries - Trenton Glass Work
Event	Particulars	Debit	Credit
1	Manufacturing overhead Dr	$130,000.00
	To Cost of goods sold		$130,000.00
	(To close overapplied overhead to COGS)