When applying fixed manufacturing overhead to production, the Work in Process inventory account will increase (decrease) by:

A) ($147,700)
B) ($145,920)
C) $147,700
D) $145,920

Question

When applying fixed manufacturing overhead to production, the Work in Process inventory account will increase (decrease) by:A) ($147,700)B) ($145,920)C) $147,700D) $145,920

Yanerlie Achille · Accepted Answer

Final Answer : D, Explanation :  Work in Process increases by the standard amount of hours allowed for the actual output multiplied by the predetermined overhead rate, which is (15,200 units × 0.80 hours per unit)× $12.00 per hour = 12,160 hours × $12.00 per hour = $145,920.

When applying fixed manufacturing overhead to production, the Work in Process inventory account will increase (decrease) by:

A) ($147,700)
B) ($145,920)
C) $147,700
D) $145,920

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Learning Objectives

Related questions

When applying fixed manufacturing overhead to production, the Work in Process inventory account will increase (decrease) by:A) ($147,700) B) ($145,920) C) $147,700D) $145,920

Definitions

Learning Objectives

Learning Objectives

Related questions

When applying fixed manufacturing overhead to production, the Work in Process inventory account will increase (decrease) by:

A) ($147,700)
B) ($145,920)
C) $147,700
D) $145,920