In December 2016, Infodeo established its predetermined overhead rate for movies
ID: 2509939 • Letter: I
Question
In December 2016, Infodeo established its predetermined overhead rate for movies produced during 2017 by using the following cost predictions: overhead costs, $2,024,000,and direct labor costs, $460,000. At year-end 2017, the company's records show that actual overhead costs for the year are $1,943,200. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released Movies still in productiorn Total actual direct labor cost $400,000 44,000 $444,000 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 R 2 and 3 Req 4 Determine the predetermined overhead rate for 2017 Overhead Rate Choose Numerator: Choose Denominator: - Overhead Rate Overhead rateExplanation / Answer
1 Estimated overhead costs/Estimated direct labor costs=Overhead rate 2024000/460000= 440% 2&3 Factory Overhead Actual overhead 1943200 1953600 Applied overhead 10400 Overapplied overhead 4 Factory overhead 10400 Cost of goods sold 10400