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The following information is available for Lock-Tite Company, which produces special-order security products and uses a job o
pter 15 in-Class Plus Determine whether there is over or underapplied overhead. Prepare the journal entry to allocate (close)
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LockTite Amount $
Factory Payroll 345,000.00
Predetermined OH rate 70%
Factory Overhead applied 241,500.00
Actual Factory Overhead Amount $
Indirect materials      15,000.00
Indirect labor      80,000.00
Other Overhead costs 120,000.00
Actual Factory Overhead 215,000.00
Over applied Overhead Amount $
Factory Overhead applied 241,500.00
Actual Factory Overhead 215,000.00
Over applied Overhead     26,500.00
Journal Entry
Date Account Debit $ Credit $
31-May Factory Overhead 26,500.00
Cost of goods sold 26,500.00
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