During the month of August, Ross MotorCo applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor.Direct labor in August was $138,000.Estimated overhead in August was $112,800.Actual overhead was composed of the following items: $$\begin{array} { l r }
\text { Indirect materials } & \$ 16,400 \
\text { Indirect labor } & 24,900 \
\text { Utilities } & 24,500 \
\text { Depreciation } & 38,700 \
\text { Repair expense } & 13,500 \
\text { Total } & \$ 118,000 \
\hline
\end{array}$$ How much will Ross MotorCo record as a debit to Manufacturing Overhead during the year?

Question

During the month of August, Ross MotorCo applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor.Direct labor in August was $138,000.Estimated overhead in August was $112,800.Actual overhead was composed of the following items: $$\begin{array} { l r } 
\text { Indirect materials } & \$ 16,400 \
\text { Indirect labor } & 24,900 \
\text { Utilities } & 24,500 \
\text { Depreciation } & 38,700 \
\text { Repair expense } & 13,500 \
\text { Total } & \$ 118,000 \
\hline
\end{array}$$ How much will Ross MotorCo record as a debit to Manufacturing Overhead during the year?

Quizplus · Accepted Answer

Ross MotorCo will record the actual overhead costs incurred as a debit to Manufacturing Overhead. The total actual overhead given is $118,000, which includes indirect materials, indirect labor, utilities, depreciation, and repair expenses.

During the Month of August, Ross MotorCo Applied Overhead to Jobs