Question

e manufacturing records for Portage Canoes at the end of the 2018 fiscal year show the following information about manufacturing ove Overhead allocated to production Achial manufacturing overhead costs Predetermined overhead allocation rate $ 399,000 431,000 42 per machine hour Read the requirements Requirement 1. How many machine houts did Portage Canoes use in 2018? Actual machine hours how much? Allocated overhead Requirement 2. Was manufacturing overhead over Estimated machine hours Manufacturing overhead is by Predetermined overhead allocation rate Total actual overhead costs Requirement 3. Prepare the journal entry to adjust Total estimated overhead costs Date Accounts Debit icturing overhead (Record debits first, then Credit Dec 31 Choose from any list or enter any number in me input fields and then continue to the next question

Answer 1

1. Machine hours
Allocated overhead	/	Predetermined overhead allocation rate	=	Actual machine hours
$399,000	/	$42	=	9,500

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2
Manufacturing overhead is	under-applied	by	$32,000 [$431,000 - $399,000]

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3
Date	Accounts	Debit	Credit
Dec. 31	Cost of Goods Sold                     [Under-applied overhead]	$32,000
	Manufacturing overhead		$32,000

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Cost of goods sold account is debited to increase its balance by the amount of under-applied overhead which is $32,000