Question

Cushing Manufacturing assigns overhead based on machine hours. The MillingDepartment logs 1,800 machine hours and Cutting Department shows 3,000 machinehours for the period. If the overhead rate is $5 per machine hour, the entry to assignoverhead will show a

Answer 1

Step-by-step explanation:

The journal entry is shown below:

Milling work in progress A/c Dr $9,000

Cutting work in progress A/c Dr $15,000

To Manufacturing overhead A/c $24,000

(Being overhead allocation is recorded)

The milling work in progress is computed by

= Milling department machine-hours × $ overhead rate

= 1,800 machine hours × $5

= $9,000

And, The cutting work in progress is computed by

= Cutting department machine-hours × $ overhead rate

= 3,000 machine hours × $5

= $15,000