Question

Yamada company applies factory overhead to its production departments on the basis of 90% of direct labor costs. in the assembly department, yamada had $125,000 of direct labor cost, and in the finishing department, yamada had $35,000 of direct labor cost. the entry to apply overhead to these production departments is:

Answer 1

Factory-Overhead...........144,000
Work in Process - Assembly .............112,500
Work in Process - Finishing .........31,500