(L. OBJ. 3, 4) Allocating manufacturing overhead [15—20 min] Selected cost data for Eur...

(L. OBJ. 3, 4) Allocating manufacturing overhead [15—20 min]

Selected cost data for European Print, Co., are as follows:

Requirements

1. Compute the predetermined manufacturing overhead rate per direct labor dollar.

2. Prepare the journal entry to allocate overhead cost for the year.

3. Use a T-account to determine the amount of under allocated or overallocated manufacturing overhead.

4. Prepare the journal entry to close the balance of the Manufacturing overhead account.