1. A manufacturer has the following information:
Budgeted or estimated Mfg OH costs = $1200
Estimated Direct Labor hours by plant workers = 500; Plant worker wages = $16/hour, budget & actual
Estimated Machine Hours = 250
Actual Mfg OH costs for the period = $1,180
Actual Machine Hours = 254
Actual Direct Labor hours by plant workers = 495
The predetermined overhead rate is based on estimated direct labor hours.
What is the predetermined overhead rate for manufacturing overhead?
What is the amount of applied manufacturing overhead?
What is the overapplied or underapplied manufacturing overhead?
Show the journal entry in debit and credit form to apply manufacturing overhead.
Show the journal entry in debit and credit form to adjust for underapplied or overapplied overhead.