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Question - Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $187,000. Estimated direct labor cost was $465,630 for 18,700 hours.
Actual costs for the most recent month are summarized here:
Item Description
Total Cost
Direct labor (1,870 hours)
$46,564
Indirect costs
Indirect labor
2,500
Indirect materials
3,370
Factory rent
3,290
Factory supervision
4,750
Factory depreciation
5,720
Factory janitorial work
1,290
Factory insurance
1,850
General and administrative salaries
4,170
Selling expenses
5,310
Required: Journal entries for overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Record the application of manufacturing overhead to production.
Record the actual manufacturing overhead cost incurred.
Record the transfer of manufacturing overhead account balance to cost of goods sold.
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