Pb8.
lo 4.6queen bee’s honey, inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. at the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. what is the entry to dispose of the overapplied or underapplied overhead?

                                                                   Debit               Credit

Applied overheads                                    $110,000

Cost of sales (over applied overheads)                             $4,000

Overhead control account                                                 $106,000

Explanation:

Since the estimated overhead amounting to $110,000 are greater than the actual overheads amounting to $106,000, therefore the overheads are overapplied by $4,000.

The journal entry to disposed off the overapplied overheads are given below:

                                                                   Debit               Credit

Applied overheads                                    $110,000

Cost of sales (over applied overheads)                             $4,000

Overhead control account                                                 $106,000

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.