Time tickets indicated 3,000 labor hours in the production of Job .115, out of which 2,800 were direct labor hours. The company pays $10 per each labor hour. The entry to record this transaction is: * O A debit to Factory Labor $30,000 and a credit to Cash 30,000 A debit to Work in Process Inventory $30,000 and a credit to Factory Labor $30,000 O A debit to Work in Process Inventory $28,000 and a credit to Factory Labor $28,000 A debit to Work in Process Inventory $28,000, a debit to manufacturing overhead $2,000, and a credit to Factory Labor $30,000 O None of the above

Time tickets indicated 3,000 labor hours in the production of Job .115, out of which 2,800 were direct labor hours. The company pays $10 per each labor hour. The entry to record this transaction is: * O A debit to Factory Labor $30,000 and a credit to Cash 30,000 A debit to Work in Process Inventory $30,000 and a credit to Factory Labor $30,000 O A debit to Work in Process Inventory $28,000 and a credit to Factory Labor $28,000 A debit to Work in Process Inventory $28,000, a debit to manufacturing overhead $2,000, and a credit to Factory Labor $30,000 O None of the above

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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Similar questions

During the month, Job AB2 used specialized machinery for 450 hours and incurred $500 in utilities on account, $300 in factory depreciation expense, and $100 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
Prepare the journal entry to record the factory wages of $25,000 incurred in the processing department and $15,000 incurred in the production department assuming payment will be made in the next pay period.
Prepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.
York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
The books of Petry Products Co. revealed that the following general journal entry had been made at the end of the current accounting period: The total direct materials cost for the period was $40,000. The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: Because jobs are randomly scheduled for the overtime period, any overtime premium is charged to Factory Overhead. a. Compute Herberts total earnings for the week. b. Present the journal entry to distribute Herberts total earnings. (Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.)
A debit to Factory and a credit to Factory Wages Payable $95,000 O None of the above Time tickets indicated 900 labor hours in the production of Job.115, out of which 600 were direct labor hours. The company pays $8 peach labor hour. The entry to record this transaction is: * A debit to Work in Process Inventory $4,800, a debit to manufacturing overhead $2,400, and a credit to Factory Labor $7,200 A debit to Work in Process Inventory $7,200 and a credit to Factory Labor $7,200 A debit to Factory Labor $4,800, a debit to manufacturing overhead $2,400, and a credit to Work in Process Inventory $7,200 None of the above POM C QH
Time tickets indicated 3,000 labor hours in the production of Job .115, out of which 2,800 were direct labor hours. The company pays $10 per each labor hour. The entry to record this transaction is: * A debit to Factory Labor $30,000 and a credit to Cash 30,000 A debit to Work in Process Inventory $30,000 and a credit to Factory Labor $30,000 A debit to Work in Process Inventory $28,000 and a credit to Factory Labor $28,000 A debit to Work in Process Inventory $28,000, a debit to manufacturing overhead $2,000, and a credit to Factory Labor $30,000 None of the above
Time tickets indicated 8,000 labor hours in the production of Job .115, out of which 1,000 were indirect labor hours. The company pays $10 per each labor hour. The entry to record this transaction is: * A debit to Work in Process Inventory $70,000 and a credit to Factory Labor $70,000 A debit to Work in Process Inventory $90,000, a credit to manufacturing overhead $10,000, and a credit to Factory Labor $80,000 A debit to Work in Process Inventory $70,000, a debit to manufacturing overhead $10,000, and a credit to Factory Labor $80,000 None of the above
Cavy Company accumulated 550 hours of direct labor on Job 567 and 760 hours on Job 999. The direct labor was incurred at a rate of $16 per direct labor hour for Job 567 and $25 per direct labor for Job 999. Journalize the entry for the flow of labor costs into production. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank