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Krispin Corporation had the following factory overhead costs during June 2020: Indirect materials $48,000 Indirect labor...

Krispin Corporation had the following factory overhead costs during June 2020:

Indirect materials $48,000

Indirect labor 75,000

Factory depreciation 32,000

Factory utilities 21,000

Factory insurance 14,000

Factory property taxes 12,000

During June, a total of 40,000 machine hours were used.

INSTRUCTIONS A. Compute the actual overhead rate for June.

B. Give the general journal entry to record the actual overhead costs for June (assume the utiities, insurance, and property taxes are paid in cash). (general journal)

C. Based on your rate, compute the total overhead cost to be applied to production in June.

D. Give the journal entry to record the applied overhead costs for June.(general journal)

E. If one of the units produced during June required 5,400 machine hours, hours, what amount of overhead cost will be applied to that unit?

F. Do you expect the July actual overhead rate to be the same as the June rate? Explain

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ekkarill92 answered 2 years ago
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