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:

Strategy Formulation

The process of developing strategies to achieve organizational goals based on analysis of internal and external environments.

Organizational Structure

The manner in which an organization divides its labor into specific tasks and achieves coordination among these tasks.

Indirect Impact

The secondary or not immediately apparent effects of an action or policy, which may influence outcomes in a less direct manner.

Strategy Formulation

is the process of determining appropriate courses of action for achieving organizational objectives and overall direction.