Answer:
Answer:
1.) Overhead Absorption rate= $30 per hour
2) Absorbed overhead= $70,500
Over-absorbed overhead=$4700
3) Journal entry:
Debit Manufacturing overhead expense $4,700
Credit Cost of goods sold $4,700
Explanation:
Overhead Absorption rate = Budgeted overhead /Budgeted labour hours
= 72,000 /2,400 hours = $30 per hour
Absorbed overhead = OAR × Actual labour hours
=$30
× 2350 = $70,500
Over-absorbed overhead = Absorbed overhead - Actual overhead
= $70,500 - $65,800 = $4700
Journal entry:
Debit Manufacturing overhead expense $4,700
Credit Cost of goods sold $4,700
Answer:
Overhead Absorption rate= $30 per hour
Absorbed overhead= $70,500
Over-absorbed overhead=$4700
Journal entry:
Debit Manufacturing overhead expense $4,700
Credit Cost of goods sold $4,700
