i don't understand this transaction.

Unknownprince · #1 Dec 28, 2007, 11:40 AM

Trasactions for the Accounting Period

Event 5. AT th ebeginning of the year, the company expected overhead cost for the period to be $6300 and 1000 direct labor hours to be worked. Overhead is allocated based on direct labor hours to be worked.Overhead is allocated based on direct labor hours, which as indicated in EVent 3, amounted to 950 for the year.

Event 3. During the year, direct labor amounted to 950 hours recorded in the Wage Payable account at $10.50 per hour.

i don't understand what to do in this transaction. also where would i place this event on T-account. can someone help me?



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