Question

Requirement t outes preden wecation 333 S2 SI 500.000 OSETE

Answer 1

1. Pre determined Overhead rate = Expected Manufacturing Overhead / Expected Machine hours
= $880,000 / 80000 = $11 per machine hour

2.

Account Titles	Debit	Credit
Work in Process Inventory	$        726,000		=66000*11
Manufacturing Overhead		$        726,000

3.

Manufacturing Overhead
Depreciation	$        530,000	$        726,000	Work in Process Inventory
Property taxes on plant	$          31,850
Plant Janitors Wages	$          20,000
		$        144,150

4.

Account Titles	Debit	Credit
Manufacturing Overhead	$        144,150
Cost of Goods Sold		$        144,150

The entry decreases cost of goods sold

Since manufacturing overhead account has credit balance, manufacturing overhead is overapplied.
Over applied overhead = $144150