70.2K
Verified Solution
Link Copied!
It was year-end and time for the Sweltzer Co. accountant to address its MOH costs.
Throughout the year, the company incurred actual MOH costs of $237,000. Its budgeted MOH costs were
very close to this, at $225,000. Using a budgeted MOH rate of $1.50 per direct labor dollar, the company
applied MOH cost to production after recognizing $140,000 in direct labor cost. Determine whether MOH
was under- or overapplied this year and by how much, and record the journal entry to write off this difference
directly to Cost of Goods Sold
Answer & Explanation
Solved by verified expert
