Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost. The entry to apply overhead to these production departments is: O Factory Overhead - Assembly Factory Overhead - Finishing Work in Process 112,500 31,500 144,000 O Factory Overhead 144,000 112,500 Work in Process - Assembly Work in Process - Finishing 31,500

Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost. The entry to apply overhead to these production departments is: O Factory Overhead - Assembly Factory Overhead - Finishing Work in Process 112,500 31,500 144,000 O Factory Overhead 144,000 112,500 Work in Process - Assembly Work in Process - Finishing 31,500

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Description: Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs.In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had$35,000 of direct labor cost. The

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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