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Quiz - BUS 121 Ch. 3 _2B

Quiz - BUS 121 Ch. 3 _2B - For the bases of(1 Direct...

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NAME CHRISTINE DONALDSON SCORE ______________ BUS 121: Managerial Accounting Chapter 3 Quiz #2 Applied Mfg. O/H Problem (10 points) Estimated Data: Morgan Company uses the following annual estimates to determine its Mfg. O/H Rate: Total dollars of manufacturing overhead - $672,000. Estimated figures for the four possible bases are: Direct Material Cost $800,000 Direct Labor Cost $600,000 Direct Labor Hours 40,000 Hrs Machine Hours 120,000 Hrs Actual Quarterly Data: Journal entries from the company records: a.) Raw Materials 160,000 Accounts Payable 160,000 b.) WIP (Direct Materials) 175,000 Mfg O/H (Indirect Materials) 35,000 Raw Materials 210,000 c.) WIP (Direct Labor) 135,000 Mfg. O/H (Indirect Labor) 110,000 Salaries Expense 155,000 Wages and Salaries Payable 400,000 Other Information (Actual): Machine Hours – 26,500 Hrs Required:
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Unformatted text preview: For the bases of (1) Direct Material Cost and (2) Machine Hours , calculate the Est. Mfg. O/H Rate, and then apply it to the appropriate actual data given to arrive at the journal entry to charge applied overhead to the work-in-process. Record your journal entries in the format below. Account Description Debit Credit For DM Cost (1) Dr. Work-in-Process 147,000 Cr. Manufacturing Overhead 147,000 For Machine Hrs (2) Dr. Work-in-Process 148,400 Cr. Manufacturing Overhead 148,400 DM COST: 672,000/$800,000 = 84% DL COST: $672,000/$600,000 = 112% DL HOURS: $672,000/40,000 = 16.80/Hr MACH HRS: $672,000/120,000= 5.60/Hr BUS 120: Financial Accounting Extra Credit Quiz DM COST Actual: $175,000 * .84 = 147,000 MACH HRS Actual: 26,500 * 5.6 = 148,400 2...
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