Question

need hwlp with question 5

Compute Tasty's departmental overhead rate for the mixing department based on machine hours. A) $1.50 per MH. B) $3.33 per MH. C) $0.60 per MH. D) $0.50 per MH. E) $2.00 per MH. 5) Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for overhead allocation is: Direct materials used $ 87,000 Direct labor used 160,000 155% Predetermined overhead rate (based on direct labor) 432,000 Goods transferred to finished goods 444,000 Cost of goods sold 810,000 Credit sales A) Debit Factory Overhead $248,000; credit Cash $248,000. B) Debit Work in Process Inventory $160,000; credit Factory Payroll $160,000. C) Debit Work in Process Inventory $248,000, credit Factory Overhead $248,000 D) Debit Work in Process Inventory $160,000; credit Factory Overhead $160,000. E) Debit Work in Process Inventory $160,000; credit Cash $160,000. 6) Crinkle Cut Clothes Company manufactures two products CCI and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $338,250. The direct labor and direct materials costs are estimated to be consistent with the current year, Direct labor costs $28 per hour and the company expects to manufacture 22,000 units of CCI and 91,000 units of CC2 next year. Direct Direct Material per Unit $ 37.10 $ 25.20 Labor Dollars per Unit $ 22.40 $ 15.40 CCI CC2 Compute the plantwide overhead rate for next year. A) $28.00 per DLH. B) $37.80 per DLH. $1.35 per DLH. DIH

Answer 1

The journal entry to allocate the factory overhead cost

Here, the factory overhead cost is allocated on the basis of the predetermined overhead rate of 155% of the direct labor cost. Here, we’ve direct labor cost = $160,000.

Therefore, the factory overhead cost allocated = 155% of the direct labor cost

= $160,000 x 155%

= $248,000

Hence, the journal entry to allocate the factory overhead cost is as follows

General Journal	Debit ($)	Credit ($)
Work-in-process inventory A/c	248,000
To Factory Overhead Cost A/c		248,000
[Being the journal entry passed to allocate the factory overhead cost]