The predetermined overhead rate for Shilling Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000.Actual costs incurred were:
a.Calculate the predetermined overhead rate and calculate the overhead applied during the year.
b.Prepare the journal entry to eliminate the over- or underapplied overhead,assuming that it is not material in amount.

Question

The predetermined overhead rate for Shilling Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000.Actual costs incurred were:
  a.Calculate the predetermined overhead rate and calculate the overhead applied during the year.
b.Prepare the journal entry to eliminate the over- or underapplied overhead,assuming that it is not material in amount.

Quizplus · Accepted Answer

The Answer of The predetermined overhead rate for Shilling Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000.Actual costs incurred were:
  a.Calculate the predetermined overhead rate and calculate the overhead applied during the year.
b.Prepare the journal entry to eliminate the over- or underapplied overhead,assuming that it is not material in amount.

The Predetermined Overhead Rate for Shilling Manufacturing Is Based on Estimated