Question

Harwood Company uses a job order costing system that applies overhead cost to jobs on the basis of machine hours. The company's predetermined overhead rate of $2.40 per machine hour was based on a cost formula that estimates $192,000 of total manufacturing overhead for an estimated activity level of 80.000 machine hours Required: 1. Assume that during the year the company works only 75.000 machine hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts 2A Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. 28. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold Complete this question by entering your answers in the tabs below. RegZA Reg 28 accounts. Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your Manufacturing Overhead Work in Process Mantenance 21 000 Drama ) 710 000 3 000 Drect labor) 00000 Overhead 000 00 000

please complete all of the required because it is all 1 question

Answer 1

1) T account

Manufacturing overhead					Work in process
Maintenance	21000	180000	a) Work in process		Direct material	710000
Indirect material	8000				Direct labor	90000
Indirect labor	60000				a) Manufacturing overhead	180000
Utilities	32000
Insurance	7000
Depreciation	56000
Balance	4000

2a) Under applied overhead by $4000

2b) Journal entry

Date	account and explanation	Debit	Credit
	Cost of goods sold	4000
	Manufacturing overhead		4000
	(To record under applied overhead)