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
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