Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Ask your questions and receive detailed answers from professionals with extensive experience in various fields. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700.

Required:
Complete the journal entry.

Sagot :

Parrain

Answer:

Date                     Account Title                                         Debit             Credit

January 31          Work in Process                                   $540

                            Factory Overhead                                                        $540

Explanation:

Overhead is applies by linking it to direct labor.

Overhead is $20,000 when Direct labor is $100,000.

= 20,000 / 100,000

= 20%

The overhead for this job must therefore be:

= 20% * 2,700

= $540

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.