Manufacturing overhead was estimated to be $372,600 for the year along with 20,700 direct labor hours. Actual manufacturing overhead was $405,000, and actual labor hours were 23,800. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct?

a. Cost of Goods Sold would be debited for $23,400
b. Cost of Goods Sold would be credited for $23,400
c. Cost of Goods Sold would be debited for $32,400
d. Cost of Goods Sold would be credited for $32,400

The correct answer is B.

Explanation:

Giving the following information:

Manufacturing overhead was estimated to be $372,600 for the year along with 20,700 direct labor hours. Actual manufacturing overhead was $405,000, and actual labor hours were 23,800.

First, we need to calculate the estimated overhead rate.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 372,600/20,700= $18 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 18*23,800= $428,400

To adjust the cost of goods sold, we need to determine the under/over allocation:

Over/under allocation= real MOH - allocated MOH

Over/under allocation= 405,000 - 428,400= $23,400 overallocated

Adjusted COGS= COGS - over-allocated overhead

COGS would be credited with $23,400.

the answer choices are:

provides online banking

provides automatic payment services

provides home loans by using saving accounts

accept tax return refunds

hopefully someone can answer the question now lol

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