Washtenaw Corporation uses a job-order costing system. The following data is for last year:
Estimated direct labor hours………………… 12,000 hours
Estimated manufacturing overhead costs……. $39,000
Actual direct labor hours…………………….. 11,000 hours
Actual manufacturing overhead costs……….. $37,000
Washtenaw applies overhead using a predetermined overhead rate based on direct labor hours.
In preparing the journal entry to close out manufacturing overhead:
1. What is the Debit ?
2. What is the Credit?
3. What is the Amount?
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