Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Omaha Mechanical has a monthly overhead cost.

Omaha Mechanical has a monthly overhead cost.

For 2010, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. The firm's 2010 expected annual capacity is 78,000 direct labor hours, to be incurred evenly each month. Making one unit of the companys product requires 1.5 direct labor hours.

1) Determine the total overhead to be applied per unit of product in 2010.

2) Prepare journal entries to record the application of overhead to Work in Process Inventory and the incurrence of $128,550 of actual overhead in January 2010, when 6,390 direct labor hours were worked.

3) Given the actual direct labor hours in part (2) how many units would you have expected to be produced in January?

May 19 2018 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions