Question

Question 3 Partially correct Mark 1.67 out of 3.00 P Flag question Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year $405.000 Estimated direct labor cost for the year (@ $9/hr.) 450,000 Actual manufacturing overhead cost for January 24,000 Actual direct labor cost for January (1,200 hours) 16,500 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. 8.1 X % b. Prepare a journal entry that applies consulting overhead for January General Journal Description Debit Credit Work in process inventory ох 0 Consulting overhead ✓ 0 ох c. By what amount is consulting overhead over- or underapplied in January? Consulting overhead was under-applied by $ 0 x in January Check You have correctly selected 5. Partially correct Marks for this submission: 1.6773.00

Answer 1

Answer requirements as follows: D a 4 A B с 1 2 Estimated consulting overhead $ 4,05,000 3 Estimated direct labor cost $ 4,50,000 Predetermined overhead rate 90% 5 b 6 General Journal 7 Description Debit Credit 8 Work in process inventory $ 14,850 Consulting overhead $ 14,850 10 11 c Consulting overhead was underapplied by S9,150 in Janaury 12 Note : $24,000 - $14,850 = $9,150. 9 Calculations: с D 405000 450000 C2/C3 A B 1 a 2 Estimated consulting overhead 3 Estimated direct labor cost 4 Predetermined overhead rate 5 b 6 General Journal 7 Description 8 Work in process inventory 9 Consulting overhead 10 11 c Consulting overhead was underapplied by S9,150 in Janaury 12 Note : $24,000 - $14,850 = $9,150. Debit Credit 16500*90% C8