Check my work Exercise 15-16 Factory overhead computed, applied, and adjusted LO
ID: 2328086 • Letter: C
Question
Check my work Exercise 15-16 Factory overhead computed, applied, and adjusted LO P3, P4 In December 2016, Infodeo established its predetermined overhead rate for movies produced during 2017 by using the following cost predictions: overhead costs, $2,538,000,and direct labor costs, $470,000. At year-end 2017, the company's records show that actual overhead costs for the year are $1,831,300. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released Movies still in production Total actual direct labor cost $300,000 41,000 $341,000 1. Determine the predetermined overhead rate for 2017. 2&3. Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold Complete this question by entering your answers in the tabs below Req 1 Req 2 and3 Req 4 Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold View transaction listExplanation / Answer
Answer = 1) CALCULATION OF THE RPEDERTERMINED OVERHEAD RATE = Overhead Rate = Overhead Cost / Labour Cost Overhead Rate = $ 2,538,000 / $ 470,000 = 540.0% Answer = 2 & 3) CALCULATION OF THE OVERHEAD COST OVERHEAD COST APPLIED AND OVERLAPPLIED OR UNDER APPLIED PARTICULARS AMOUNT AMOUNT Acutual Overhead $ 18,31,300 $ 18,41,400 Direct Labour Cost ($ 341,000 X 540% ) Overapplied overhead $ 10,100 Total $ 18,41,400 $ 18,41,400 Total Answer = 4) Date Particulars Debit Credit Dec , 31 Manufacturing Overhead Cost $ 10,100 To Cost of Goods Sold $ 10,100 (To Record the entry of overhead overapplied )