Weakley Corporation Uses a Predetermined Overhead Rate That Was Based

question 371

Essay

Weakley Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $358,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $382,000 and 18,300 total machine-hours during the period.Required:Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.

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Definitions:

Credit Side

The right side of an accounting ledger where credits are recorded, often indicating a decrease in assets or an increase in liability or equity.

Debit Side

The Debit Side of an account records increases in assets or expenses and decreases in liabilities, equity, and income in double-entry bookkeeping.

Rules Of Debit

Rules governing the increase or decrease in account balances within the double-entry bookkeeping system, where debits typically increase assets or expenses and decrease liabilities, equity, and revenue.

Credit Side

The right side of an accounting entry, indicating increases in liabilities, revenues, and equity, and decreases in assets and expenses.