Give the entry to assign overhead to production for a given period, assuming that the overhead rate is 150 percent of direct labor cost and that $80,000 of direct labor cost was incurred in that period.

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Business

Giana Frederick

27 June, 00:13

Give the entry to assign overhead to production for a given period, assuming that the overhead rate is 150 percent of direct labor cost and that $80,000 of direct labor cost was incurred in that period.

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Ayaan Barnett · Answer 1

Dr. Cr.

Work in process 120,000

Production overhead 120,000

Explanation:

Given dа ta:

Overheard rate = 150 percent

Direct labor cost = $80,000

Assigned Production overhead = Direct labor cost x Overheard rate

Assigned Production overhead = $80.000 x 150%

Assigned Production overhead = $80.000 x 1.50

Assigned Production overhead = $120.000