Rozlyn Corporation makes children's toys. It applies overhead at the rate of 110% of direct labor costs. During the year, the labor costs were $130,000. The actual overhead was $142,000. Make the appropriate general journal entry dated December 31, 20--, to adjust the factory overhead account balance (under- or overapplied) for the year.

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The Answer of Rozlyn Corporation makes children's toys. It applies overhead at the rate of 110% of direct labor costs. During the year, the labor costs were $130,000. The actual overhead was $142,000. Make the appropriate general journal entry dated December 31, 20--, to adjust the factory overhead account balance (under- or overapplied) for the year.

Rozlyn Corporation Makes Children's Toys