A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...

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A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that

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Answer 1

Answer #1

Pre determined overhead rate = Budgeted Overheads/Budgeted Hours

= 172800/21600

= $8 per hour

Applied overhead = Pre determined rate*Actual hours

= 8*14000

= $112,000

Since factory overhead is a cost, it will be debited

Hence, the answer is

b.Debit to factory overhead for $112,000

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Answer 2

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