Ask Question
8 April, 16:34

PB8.

LO 4.6Queen Bee’s Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the overapplied or underapplied overhead?

+2
Answers (1)
  1. 8 April, 20:04
    0
    Debit Credit

    Applied overheads $110,000

    Cost of sales (over applied overheads) $4,000

    Overhead control account $106,000

    Explanation:

    Since the estimated overhead amounting to $110,000 are greater than the actual overheads amounting to $106,000, therefore the overheads are overapplied by $4,000.

    The journal entry to disposed off the overapplied overheads are given below:

    Debit Credit

    Applied overheads $110,000

    Cost of sales (over applied overheads) $4,000

    Overhead control account $106,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “PB8. LO 4.6Queen Bee’s Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers