Oddley Corp

question 174

Essay

Oddley Corp.uses a job order costing system.The following information pertains to costs applied to jobs during the current year:

Oddley Corp.'s predetermined overhead rate is 60% of direct labor cost. At the end of the year, the company's records show that $189,000 of actual factory overhead has been incurred.

(a) Determine the amount of overapplied or underapplied overhead.
(b) Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.

---

Definitions:

Customer Relationships

The dynamic interactions and experiences between a business and its customers, aiming to foster loyalty and satisfaction.

Word-Of-Mouth-Communication

The informal exchange of information, opinions, or recommendations about products or services between individuals, without paid advertising.

Customer Lifetime Value

The total worth to a business of a customer over the whole period of their relationship, estimating the net profit attributed to the entire future relationship with a customer.

Cannibalization

A situation in which a new product or service significantly reduces the sales or market share of an existing product or service offered by the same company.