Reynolds manufacturers inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. if job number 117 incurred 2,300 direct labor hours, work in process will be debited and factory overhead will be credited for

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Business

Oscar Calhoun

29 April, 15:58

Reynolds manufacturers inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. if job number 117 incurred 2,300 direct labor hours, work in process will be debited and factory overhead will be credited for

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Aliana Anderson · Answer 1

I would say that the 2300 hours would be debited and for the overhead, I believe it should be 2300/9500=0.242 x $95,000=$23,000 though I don't know why it would be credited and not debited as well since it is a cost also.