Myers Manufacturing Uses a Standard Cost System

question 92

Essay

Myers Manufacturing uses a standard cost system.The allocation base for overhead costs is direct labor hours.Standard and actual data for manufacturing overhead are as follows:
Variable overhead allocation rate: $30 per direct labor hour
Fixed overhead allocation rate: $10 per direct labor hour
Actual overhead incurred (variable and fixed): $45,600
Standards for direct labor are as follows:
Hours per unit 0.5,Direct labor cost per hour $18.00
Actual direct labor for the month: 1,200 hours for a total cost of $24,000
Actual and planned production for the month: 3,000 units
Prepare the journal entry to allocate overhead cost (both variable and fixed)to production.

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Definitions:

Ordinary Proxy

A standard proxy that grants another individual the right to vote shares on behalf of the shareholder at a company's annual meeting.

Model Business Corporation Act

A set of model laws prepared to provide a standard for the governance of corporations, which individual states may adopt or modify.

Voting

The act of expressing a choice or decision in an election or other formal decision-making process.

Straight Voting

A method of voting in corporate elections where shareholders must assign all of their votes to one candidate for each vacancy.