Question:
Dapper Company had only one job in process on May 1. The job had been charged with $3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May, the activity was recorded:
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Raw materials (all direct materials):
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Beginning balance
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$8,500
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Purchased during the month
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$42,000
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Used in production
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$48,500
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Labor:
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|
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Direct labor-hours worked during the month
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2,200
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Direct labor cost incurred
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$25,520
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Actual manufacturing overhead costs incurred
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$52,800
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Inventories:
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Raw materials, May 30
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?
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Work in process, May 30
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$32,190
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Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The entry to dispose of the under- or overapplied overhead cost for the month would include a:
A) debit of $2,200 to Manufacturing Overhead
B) debit of $14,950 to Manufacturing Overhead
C) credit of $14,950 to Manufacturing Overhead
D) credit of $2,200 to Manufacturing Overhead