Author Question: Which of the following is notconsidered to be a liability? a. Wages Payable b. Accounts Receivable ... (Read 91 times)

james9437 · **on:** Jul 5, 2018

Which of the following is notconsidered to be a liability?
a. Wages Payable
b. Accounts Receivable
c. Unearned Revenues
d. Accounts Payable

Question 2

Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of 12 per direct labor-hour.

The following data are obtained from the accounting records for June 2014:

Direct materials 350,000
Direct labor (16,000 hours 11/hour) 176,000
Indirect labor 20,000
Plant facility rent 100,000
Depreciation on plant machinery and equipment 40,000
Sales commissions 50,000
Administrative expenses 60,000

Required:
a. What actual amount of manufacturing overhead costs was incurred during June 2014?
b. What amount of manufacturing overhead was allocated to all jobs during June 2014?
c. For June 2014, was manufacturing overhead underallocated or overallocated? Explain.

soda0602 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

b

Answer to Question 2

Answer:
a. 20,000 + 100,000 + 40,000 = 160,000
b. 16,000 12 per dlh = 192,000
c. Overallocated by 32,000; only 160,000 incurred of the 192,000 allocated