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.Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.
a.Predetermined overhead rate = $770,000/$350,000 = 220% of direct labor cost
Overhead applied = $347,000 * 220% = $763,400
b.

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.Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.
a.Predetermined overhead rate = $770,000/$350,000 = 220% of direct labor cost
Overhead applied = $347,000 * 220% = $763,400
b.

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.Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.
a.Predetermined overhead rate = $770,000/$350,000 = 220% of direct labor cost
Overhead applied = $347,000 * 220% = $763,400
b.

The Predetermined Overhead Rate for Shilling Manufacturing Is Based on Estimated