Question

1. The journal entry to record applying overhead during the production process is:

2. Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,740 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,670.

Multiple Choice Manufacturing Overhead Work in Process Debit Credit XXX XXX Debit Credit XXX Finished Goods Manufacturing Overhead XXX Manufacturing Overhead Finished Goods Debit Credit XXX XXX Debit Credit XXX Work in Process Manufacturing Overhead XXX

The predetermined overhead rate for the year was closest to:

3. Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $240,000 and 5,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,200 and actual direct labor-hours were 4,700.

The applied manufacturing overhead for the year was closest to: (Round your intermediate calculations to 2 decimal places.)

4. Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $243,900 and 8,900 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $244,800 and actual direct labor-hours were 6,000.

The overhead for the year was: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Debit Credit 1) Account Titles and Explanation Work in process Manufacturing overhead XXX XXX When the overhead is applied, work in process account is debited and manufacturing account is credited. Manufacturing overhead applied increases the balance in work in process, not finished goods. Hence, the last option is correct. 2) Predetermined overhead rate = Total estimated overhead/Estimated labor-hours Predetermined overhead rate = $239,700/4,740 Predetermined overhead rate = $50.57 Hence, the correct option is $50.57. 3) Predetermined overhead rate = Total estimated overhead/Estimated labor-hours Predetermined overhead rate = $240,000/5,000 Predetermined overhead rate = $48 Applied manufacturing overhead = 4,700*$48 Applied manufacturing overhead = $225,600 Hence, the correct option is $225,600.

4) Predetermined overhead rate = Total estimated overhead/Estimated labor-hours Predetermined overhead rate = $243,900/8,900 Predetermined overhead rate = $27.40 Applied manufacturing overhead = 6,000*$27.40 Applied manufacturing overhead = $164,400 Actual overhead (given) = $244,800 Actual overhead is more than the overhead applied, hence the overhead is underapplied. Underapplied overhead = $244,800 - $164,400 Underapplied overhead = $80,400 Hence, the correct option is $80,400 underapplied.