Managerial Accounting

Free Version

Upgrade subject to access all content


Solve for Pounds of Materials Used Given Overhead Details


Scram Inc. estimates their manufacturing overhead based on the pounds of direct materials used. In the current year, the predetermined overhead rate is \$1.50 per pound of direct material used. The month end journal entry to record the production activity included the following:

Journal entry: DEBIT CREDIT
Work in Process \$45,000
Manufacturing Overhead Control \$45,000

Actual overhead was $42,500. What was the amount of materials used during the month?