Kei Products Uses a Predetermined Overhead Application Rate of $18

question 16

Essay

Kei 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.Actual labor hours: $590,400 / $18 per hour = 32,800 hours
Budgeted labor hours: $621,000 / $18 per hour = 34,500 hours
Actual manufacturing overhead: $590,400 - $11,900 = $578,500
A.Determine Kei's actual labor hours,budgeted labor hours,and actual manufacturing overhead.
B.

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:

Warn Consumers

The act of informing consumers about potential risks, hazards, or defects associated with a product or service.

Foreseeable Misuse

The misuse of a product or service in a manner that could reasonably be predicted by the manufacturer or provider, potentially leading to harm or liability.

Limit Liability

means to legally restrict the amount of money a person or organization can be responsible for paying in the case of a lawsuit or debt.

Injuries

Physical or emotional harm caused to a person or damage to property.