Total manufacturing-related costs incurred for Miller Company in October for all jobs is as follows:
$\begin{array}{lr}
\text { Direct materials } & \$ 900 \
\text { Insurance-factory building } & 150 \
\text { Direct labour } & 1,200 \
\text { Property taxes -factory building } & 400 \
\text { Other factory overhead costs } & 1,450 \
\text { Factory overhead applied } & 1,650
\end{array}$
Assuming Miller uses a normal costing system and applies overhead based on a predetermined rate,what is the credit to overhead control to close the account at the end of the year?

Question

Total manufacturing-related costs incurred for Miller Company in October for all jobs is as follows:
 $\begin{array}{lr}
\text { Direct materials } & \$ 900 \
\text { Insurance-factory building } & 150 \
\text { Direct labour } & 1,200 \
\text { Property taxes -factory building } & 400 \
\text { Other factory overhead costs } & 1,450 \
\text { Factory overhead applied } & 1,650
\end{array}$ 
Assuming Miller uses a normal costing system and applies overhead based on a predetermined rate,what is the credit to overhead control to close the account at the end of the year?

Quizplus · Accepted Answer

The credit to overhead control is the difference between actual overhead costs and applied overhead. Actual overhead costs are $150 (insurance) + $400 (property taxes) + $1,450 (other overhead) = $2,000. Applied overhead is $1,650. The difference is $2,000 - $1,650 = $350.

Total Manufacturing-Related Costs Incurred for Miller Company in October for All