Carib Tings & More does handcrafted memorabilia for the tourism industry, in which each batch of items is a job. The company has a highly machine intensive production process, so it allocates manufacturing overhead based on machine hours. Carib Tings & More predetermined overhead application rate for was computed from the following data:
Total estimated factory overheads $
Total estimated machine hours
At the end of May Carib Tings & More reported work in process inventory of $
During June Carib Tings & More actually used machine hours and recorded the following transactions.
tableitableMore paid a $ bill for freight iniiManufacturing wages incurred,$
