Refer to Exercise 18-6. Assume the actual hours and cost data were: poi7 Actual Paper Rock Scissors

Refer to Exercise 18-6. Assume the actual hours and cost data were: poi7

Transcribed Image Text:

Actual Paper Rock Scissors Manufacturing overhead Direct labor cost $850,000 $450,000 $400,000 $375,000 $700,000 $400,000 Direct labor-hours 45,000 46,000 38,000 Machine-hours 105,000 200,000 130,000 a. Compute overapplied or underapplied overhead for each company. b. Prepare journal entries to transfer overapplied or underapplied overhead to Cost of Goods Sold for each company.