In job-order costing,the journal entry for overhead applied at the rate of $3 per direct labour hour when 210 direct labour hours were worked is:
$\begin{array} { | l | l | l | }
\hline
\text { Work in Process }& 630 \
\text { Applied Overhead }&& 630\
\hline
\end{array}$

Question

In job-order costing,the journal entry for overhead applied at the rate of $3 per direct labour hour when 210 direct labour hours were worked is:
 $\begin{array} { | l | l | l | } 
\hline
\text { Work in Process }& 630  \
\text { Applied Overhead  }&& 630\
\hline
\end{array}$

Quizplus · Accepted Answer

The correct journal entry should debit Work in Process and credit Manufacturing Overhead (not Applied Overhead) for the amount of $630 (210 hours * $3 per hour).

In Job-Order Costing,the Journal Entry for Overhead Applied at the Rate