On March 4th, Micro Sales Makes $4,850

question 121

Essay

On March 4th, Micro Sales makes $4,850.00 in sales on bank credit cards which charge a 2.5% service charge and deposit the funds into Micro Sales bank accounts at the end of the business day. Journalize the sales and recognition of expense.

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Definitions:

Underapplied Overhead

A condition where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost exceeds the actual overhead incurred.

Direct Labor-Hours

Cumulative hours employees commit to the process of manufacturing.

Underapplied Overhead

A scenario where the estimated overhead costs allocated are less than the actual overhead costs incurred during production.