Question - Alpha Company's actual manufacturing overhead for the year was $500,000 and for Job ABC was $1,200.
a. Was manufacturing overhead over or underapplied to Job ABC using the amount $2,400? By how much?
b. Was manufacturing overhead over or underapplied to Job ABC using the amount calculated in question $1,650? By how much?
c. What is the journal entry to zero out the manufacturing overhead account for question 4a? Also show the related T accounts. Assume Job ABC was the only job for the year. Was manufacturing overhead over or under applied?
d. What is the journal entries to zero out the manufacturing overhead account for the year? Use the estimated manufacturing overhead $2.75 and assume that the total estimated amount was applied to jobs during the year. Also show the related T accounts. Was manufacturing overhead under or over applied?