Kwik Products Uses a Predetermined Overhead Application Rate of $18

question 3

Essay

Kwik Products uses a predetermined overhead application rate of $18 per labor hour. A review of the company's accounting records revealed budgeted manufacturing overhead for the period of $621,000, applied manufacturing overhead of $590,400, and overapplied overhead of $11,900.
Required:
A. Determine Kwik's actual labor hours, budgeted labor hours, and actual manufacturing overhead.
B. Present the necessary year-end journal entry to handle the overapplied overhead, assuming that the firm allocates over- or underapplied overhead to Cost of Goods Sold.

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Definitions:

Late Majority

A category of individuals in the diffusion of innovation theory who adopt new ideas, practices, or products after the average member of a society.

Adoption

The act or process of taking something on as one's own, such as ideas, methods, or practices.

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An individual's belief in their innate ability to achieve goals or accomplish tasks, which can influence how they approach challenges and persistence.

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A recommended course of action derived from analysis or insights.