g. Complete the following Manufacturing Overhead T-account for the period: Final
ID: 2484396 • Letter: G
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g. Complete the following Manufacturing Overhead T-account for the period:
Final Exam Problem 3: Flexible Budgets and overhead Analysis Flick Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours. The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 for variable overhead and $30,000 for fixed overhead. The predetermined overhead rate, including both fixed and variable components, is $2.50 per direct labor-hours. The standards call for two direct labor-hours per unit of output produced. Last year, the company produced 11,500 units of product and worked 22,000 direct labor-hours. Actual costs were $22,500 for variable overhead and $31,000 for fixed overhead. Required:g. Complete the following Manufacturing Overhead T-account for the period:
Manufacturing Overhead Actual Overhead Overhead Applied Balance Include the balance in the account either debit or credit and label each entry.Explanation / Answer
Mnnufacturing Overhead T - Account Debit Credit To Actual Overhead By Work in process $57,500.00 - Variable overhead $22,500.00 (overhead applied at $2.50 per direct labour hour,Total standard labour hours for 11500 units production = 23000 hours) - Fixed overhead $31,000.00 To balance c/f (overapplied overhead) $4,000.00 $57,500.00 $57,500.00
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