Question

Send to Gradebook < Prev Next > 0.72/1 Question 2 View Policies Show Attempt History Current Attempt in Progress Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $326,772 for the year, and machine usage is estimated at 125,200 hours. For the year, $363,320 of overhead costs are incurred and 132,000 hours are used. ✓ Your answer is correct. Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.52.) Manufacturing overhead rate $ 261 per machine hour e Textbook and Media List of Accounts Your answer is partially correct. What is the amount of under-or overapplied overhead at December 31? Manufacturing Overhead $ Underapplied

Answer 1

Applied manufacturing overhead = $2.61 X 132,000 = $344,520

If applied manufacturing overhead is less than actual manufacturing overhead, then the overhead is under applied.

Underapplied overhead = $363,320 - $344,520 = $18,800 underapplied

Account Titles and Explanation	Debit	Credit
Cost of goods sold	$18,800	-
Manufacturing overhead	-	$18,800
(To record underapplied overhead assigned to cost of goods sold)