Question

Quilting Company assigns overhead on the basis of machine hours. Cutting Department machine hours $4,800 Stitching Department machine hours $8,000 Overhead Rate $10 per machine hour What is the entry for overhead?

Answer 1

Answer:

Cutting Department machine hours $4,800

Stitching Department machine hours $8,000

Overhead Rate $10 per machine hour

Cutting Department Factory Overhead  4800*10= $ 48000

Stitching Department Factory Overhead$ 80,000

The entry for overhead will be

Dr.        Factory Overhead            Cutting Department  $ 48000

Dr.         Factory Overhead             Stitching Department $ 80,000

Cr.     Work In Process $ 128,000