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3 years ago

PB8.

Business

1 answer:

Sophie [7]3 years ago

3 0

Answer:

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

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