Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for...

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Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $11

business accounting

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Answer 1

Answer #1

Ans: Credit to cost of goods sold for $400

Explanation:

It is overapplied overhead

=110500/124000=89.11=89%

=120000*89%-106400=400 overapplied overhead

To close overapplied overhead

Manufacturing overhead dr $400

cost of goods sold Cr $400

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Answer 2

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