A Manufacturing Company Applies Factory Overhead Based on Direct Labor

question 9

Multiple Choice

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. The entry to apply the factory overhead costs for the year would include a

• A) debit to factory overhead for $360,000.
• B) credit to factory overhead for $432,000.
• C) debit to factory overhead for $377,200.
• D) credit to factory overhead for $360,000.

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Definitions:

Perception and Conception

refers to the processes of acquiring sensory input and forming conceptual understanding, involving both immediate sensory experience and more complex, cognitive interpretation.

Interact

To act on or affect each other through direct or indirect influence or communication.

Complex Ways

Refers to methods or processes that are multifaceted, intricate, and often require detailed understanding or analysis.

Hydrogen Sulfide

A colorless, poisonous gas with a characteristic smell of rotten eggs, used in the manufacture of chemicals and in metallurgy.