Ansley Products applies overhead using a predetermined overhead rate. Overhead is applied based on direct...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Ansley Products applies overhead using a predetermined overhead rate. Overhead is applied based on direct labor hours. At the beginning of the year, it is estimated that $500,000 in overhead will be incurred and 25,000 hours will be worked. At year-end, the company had used 24,000 hours of labor, and actual overhead costs were $470,000. What can be concluded from this? A. Cost control was good. B. Overhead is overapplied by $10,000 C. Overhead is underapplied by $10,000 D. Overhead is applied at a rate of $19.58 per hour At the end of the period, Massive Designs had the following debit balances in its accounts. Assuming the amount in Manufacturing Overhead is considered material, the entry to allocate Manufacturing Overhead will include a A. debit to Cost of Goods Sold for $6,400. B. debit to Cost of Goods Sold for $8,000. C. debit to Cost of Goods sold for $6,154. D. credit to Work in Process Inventory for $6,400
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Ansley Products applies overhead using a predetermined overhead rate. Overhead is applied based on direct labor hours. At the beginning of the year, it is estimated that $500,000 in overhead will be incurred and 25,000 hours will be worked. At year-end, the company had used 24,000 hours of labor, and actual overhead costs were $470,000. What can be concluded from this? A. Cost control was good. B. Overhead is overapplied by $10,000 C. Overhead is underapplied by $10,000 D. Overhead is applied at a rate of $19.58 per hour At the end of the period, Massive Designs had the following debit balances in its accounts. Assuming the amount in Manufacturing Overhead is considered material, the entry to allocate Manufacturing Overhead will include a A. debit to Cost of Goods Sold for $6,400. B. debit to Cost of Goods Sold for $8,000. C. debit to Cost of Goods sold for $6,154. D. credit to Work in Process Inventory for $6,400 