8w 100 Acct 1090 V0850 2018WI A Test Week 2 Exam 4 This Ques

8«w 100 Acct 1090 V0850 2018WI (A) Test: Week #2 Exam #4 This Question: 1 pt Kyle Maisano & 1119/18 554 PM ime Remaining 00:47:30 Submit Test This Test: 18 pts possible 9of16(1 complete) SES Manufacturing has frished production aclivitles for the year The company alocates manufachrieg overhead besed on a peroeitage of direct labor costs. The My company has provided the following information Totali manufacturing overhead costs estimated at te rgofte year Total direct labor costs estimated at the beginning of the year direct labor hours estimated at the beginning of the year Actual mandacturing overhead oosts for the year Actual direct labor costs for the year Actual direct labor hours for the year $144 000 320,000 6,000 drect labor hours $159,.800 5366,000 12,400 direct labor hours Based on the above data, caloulate the unadjusted ending balance in the Manufactuning Overhead acoount OA $4,900 debilt balance B. S20700 croil balance OC. 820,700 debit balance D. Sud redt balance Cick to select your answer 8 9

Solution

Answer : D. $4900 credit balance

=> manufacturing overhead actual cost during the year = $159800 (debit)

The actual manufacturing overhead applied in proportionate of Direct Labor Costs = (Actual Direct Labor Costs / Direct Labor costs estimated) * Manufacturing overhead estimated at the beginning = (366000 / 320000) * 144000 = $164700 (credit)

The unadjusted ending balance of manufacturing overhead account = Actually applied - Actual manufacturing overhead costs during the year = $164700 credit - $159800 debit = $4900 credit