Mason Company and Rodd Company both
by | Mar 18, 2020 | Uncategorized
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Mason Company and Rodd Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year.
|
| Mason Company |
Rodd Company |
| Actual manufacturing overhead |
$ |
145,000 |
$ |
223,700 |
| Actual direct labor hours |
21,000 |
22,000 |
| Underapplied overhead |
12,500 |
| Overapplied overhead |
23,000 |
| Required: |
| a. |
Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.)
|
|
Per Direct Labor Hour |
|
Mason Company |
Rodd Company |
| Predetermined overhead rate |
|
|
| b. |
Using T-accounts, record applied and actual overhead and the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.
|
|
Adjusting Entry for Mason Company:
| Manufacturing Overhead |
Cost of Goods Sold |
|
|
|
|
| adj. |
|
Adjusting Entry for Rodd Company:
| Manufacturing Overhead |
Cost of Goods Sold |
|
|
adj. |
|
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