Fernandez Manufacturing Uses a Standard Cost System

question 84

Essay

Fernandez Manufacturing uses a standard cost system.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:

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A legal concept that requires certain types of contracts to be written and signed in order to be legally enforceable.

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A legal doctrine requiring certain agreements to be in written form and signed by all parties to be legally binding, aiming to prevent fraud and perjuries.

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