This problem is a continuation of problem 3-7 and requires journal entries based on the overhead calculations for the Griswald Company.

Required: Appendix: Prepare the following journal entries:

1. Record the actual manufacturing overhead. (Use “various accounts” for the credit side of the entry.)

2. Assuming that Griswald’s overhead application rate is $19, record the overhead allocated to production.

3. Close the over- or underapplication of overhead.

Problem 3-7

The Griswald Company allocates manufacturing overhead to production based on direct labor hours. The following information is available for Griswald:

Required:

a. Compute Griswald’s overhead application rate.

b. Assuming that Griswald’s overhead application rate is $19, calculate the amount of overhead that should be allocated to production.

Transcribed Image Text:

Estimated manufacturing overhead Actual manufacturing overhead Estimated direct labor hours Actual direct labor hours . $403,200 $378,000 21,000 20,000