Exercise 16-13 Tombert Decorating Uses A Job Order

Exercise 16-13 Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client’s consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Estimated overhead$1,000,000Actual overhead$1,024,800Estimated decorator hours40,000Actual decorator hours39,800The company uses Operating Overhead in place of Manufacturing Overhead. Compute the predetermined overhead rate. (Round answer to 2 decimal places, e. g. 25. 57. )Predetermined overhead rate$ per decorator hourPrepare the entry to apply the overhead for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal place, e. g. 55. )Account Titles and ExplanationDebitCreditDetermine whether the overhead was under- or overapplied and by how much. Overhead$

Originally posted 2018-07-20 14:53:17. Republished by Blog Post Promoter