Selected cost data for Antique Poster Co. are as follows:
Estimated manufacturing overhead cost for the year....$ 120,000
Estimated direct labor cost for the year......... 100,000
Actual manufacturing overhead cost for the year...... 90,000
Actual direct labor cost for the year............ 71,000
Requirements
1. Compute the predetermined overhead allocation rate per direct labor dollar.
2. Prepare the journal entry to allocate overhead costs for the year.
3. Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead.
4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead.