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1 October, 01:43

Cushing Manufacturing assigns overhead based on machine hours. The MillingDepartment logs 1,800 machine hours and Cutting Department shows 3,000 machinehours for the period. If the overhead rate is $5 per machine hour, the entry to assignoverhead will show a

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  1. 1 October, 05:13
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    The journal entry is shown below:

    Milling work in progress A/c Dr $9,000

    Cutting work in progress A/c Dr $15,000

    To Manufacturing overhead A/c $24,000

    (Being overhead allocation is recorded)

    The milling work in progress is computed by

    = Milling department machine-hours * $ overhead rate

    = 1,800 machine hours * $5

    = $9,000

    And, The cutting work in progress is computed by

    = Cutting department machine-hours * $ overhead rate

    = 3,000 machine hours * $5

    = $15,000
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