Adams Company and Baird 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. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Adams Company $ 208,608 29,000 $ 20,500 Baird Company $ 298,500 30,000 12,000 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 e- company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below.
Adams Company and Baird 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. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Adams Company $ 208,608 29,000 $ 20,500 Baird Company $ 298,500 30,000 12,000 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 e- company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 12E: Gerken Fabrication Inc. uses the job order cost system of accounting. The following information was...
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