Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.40 per direct labor-hour.
During May, the following activity was recorded:
Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
-The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include a:
A) credit of $5,336 to Manufacturing Overhead.
B) credit of $1,660 to Manufacturing Overhead.
C) debit of $5,336 to Manufacturing Overhead.
D) debit of $1,660 to Manufacturing Overhead.

Question

Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.40 per direct labor-hour.
During May, the following activity was recorded:
  Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
-The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include a:
A) credit of $5,336 to Manufacturing Overhead. 
B) credit of $1,660 to Manufacturing Overhead. 
C) debit of $5,336 to Manufacturing Overhead. 
D) debit of $1,660 to Manufacturing Overhead.

Quizplus · Accepted Answer

11ea7761_18fa_e3e3_81a5_eb27e1371555_TB2580_00 11ea7761_18fa_e3e4_81a5_ed14709efed4_TB2580_00

Dacosta Corporation Had Only One Job in Process on May