Exercise 15-5
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $292,552 for the year, and machine usage is estimated at 126,100 hours.
For the year, $399,060 of overhead costs are incurred and 130,500 hours are used.
Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.52.)
Manufacturing overhead rate
$
per machine hour
SHOW LIST OF ACCOUNTS
What is the amount of under- or overapplied overhead at December 31?
Manufacturing Overhead
$
UnderappliedOverapplied
SHOW LIST OF ACCOUNTS
Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
"96% of our customers have reported a 90% and above score. You might want to place an order with us."
