Pa8.
lo 4.6coop’s stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. at the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. what is the entry to dispose of the overapplied or underapplied overhead?

                                                                          Debit             Credit

Factory overheads applied                              $85,000

Profit and loss account                                     $5,000

(90,000-85,000)

Factory overheads control account                                       $90,000

Explanation:

The entry to dispose of the overapplied or underapplied overhead are as under:

                                                                          Debit             Credit

Factory overheads applied                              $85,000

Profit and loss account                                     $5,000

(90,000-85,000)

Factory overheads control account                                       $90,000

(Factory overheads applied transferred to  overheads control a/c and under applied  overheads charged to P&L account)                  

c

explanation:

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o