On January 1, PBDKCT113 Corp. estimated its total overhead for the upcoming year to be $300,000 and its total machine hours to be 20,000. PBDKCT113's actual machine hours for the year were 26,870. The company uses job-order costing with machine hours as the allocation base. At the end of the year, the PBDKCT113's books reveal following actual results: Advertising Expense $8,500 Direct Labor $23,600 (ID#96416) Purchases of Raw Materials $17,900 Rent, Factory Building $59,000 Indirect Labor $42,200 Sales Commissions $8,700 Utilities, Factory $14,300 Maintenance, Factory Equipment $5,400 CEO Salary $7,800 Depreciation, Factory Equipment $10,700 Q: What is PBDKCT113's amount of over- or under-applied OH? (Enter just the amount.) A: $

On January 1, PBDKCT113 Corp. estimated its total overhead for the upcoming year to be $300,000 and its total machine hours to be 20,000. PBDKCT113's actual machine hours for the year were 26,870. The company uses job-order costing with machine hours as the allocation base. At the end of the year, the PBDKCT113's books reveal following actual results: Advertising Expense $8,500 Direct Labor $23,600 (ID#96416) Purchases of Raw Materials $17,900 Rent, Factory Building $59,000 Indirect Labor $42,200 Sales Commissions $8,700 Utilities, Factory $14,300 Maintenance, Factory Equipment $5,400 CEO Salary $7,800 Depreciation, Factory Equipment $10,700 Q: What is PBDKCT113's amount of over- or under-applied OH? (Enter just the amount.) A: $

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Description: On January 1, PBDKCT113 Corp. estimated its total overhead for the upcoming year to be $300,000 and its total machine hours to be20,000.PBDKCT113's actual machine hours for the year were 26,870.The company uses job-order costing with machine hours a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Show Me How Applying factory overhead Keenan Company estimates that total factory overhead costs will be $322,000 for the year. Direct labor hours are estimated to be 23,000. a. For Keenan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. $ per direct labor hour b. During May, Keenan Company accumulated 720 hours of direct labor costs on Job 200 and 510 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. $ c. Prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate. If an amount box does not require an entry, leave it blank.
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