Foster Corporation applies manufacturing overhead using a predetermined overhead rate based on direct labor hours....
70.2K
Verified Solution
Link Copied!
Question
Accounting
Foster Corporation applies manufacturing overhead using a predetermined overhead rate based on direct labor hours. Foster closes any differences between actual and applied overhead to Cost of Goods Sold. During the year, Foster incurred manufacturing overhead costs of $3,175. The predetermined overhead rate is $5.00 per direct labor hour, the direct labor rate is $15 per hour, the direct materials cost is $2,750, and the total product cost is $14,500. The journal entry to close out the difference between actual and applied overhead will include: a debit or credit to COGS of how much.
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!
