Thornton Company and Vernon Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Thornton Vernon Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Company $206,350 29,000 Company $248,350 23,000 19,500 $ 30,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) Per Direct Labor Hour Thornton Company Vernon Company Predetermined overhead rate
Thornton Company and Vernon Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Thornton Vernon Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Company $206,350 29,000 Company $248,350 23,000 19,500 $ 30,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) Per Direct Labor Hour Thornton Company Vernon Company Predetermined overhead rate
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 14E: On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following...
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