The Omega Company Manufactures Customized Motors on a Job-Order Basis

question 57

Short Answer

The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following: $$\begin{array} { l c } \text { direct materials } & \$ 3,000 \\\text { direct labor } ( \$ 10 / h r ) & 1,000 \\\text { overhead } ( 150 \% \text { DL } \$ ) & 1,500\end{array}$$
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
If the rework is considered normal spoilage, what is the journal entry for overhead control? $\text { a. no journal entry is needed }$

$\begin{array}{ll}\text {b. materials } & \$ 60 \\\text { payroll } & \$ 80\\\text { overhead control } & \$ 140\end{array}$

$\begin{array}{ll}\text { c. overhead control } &\$ 140\\\text { materials } & \$ 60 \\\text { payroll } & \$ 80\end{array}$

$\text { d. none of the above }$

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