The journal entry for overhead applied at the rate of $3 per direct labour hour when 210 direct labour hours were worked is:
Work-in-Process Inventory 630
Overhead Control 630

Question

Quizplus · Accepted Answer

The overhead applied is calculated by multiplying the direct labor hours worked by the predetermined overhead rate of $3 per direct labor hour. Therefore, the journal entry to apply overhead would be:

Debit Work-in-Process Inventory: 630 (210 direct labor hours x $3 per direct labor hour)
Credit Overhead Control: 630

This entry is correct and matches option A.

The Journal Entry for Overhead Applied at the Rate of $3