Account for manufacturing overhead (Learning Objectives 4, 5)

Selected cost data for Star Poster are as follows:

Requirements 1. Compute the predetermined manufacturing overhead rate assuming that Star Posters uses direct labor cost as an allocation base.
2. Prepare the journal entry to allocate overhead cost for the year.
3. Use a T-account to determine the amount of overallocated or underallocated manufacturing overhead at the end of the year.
4. Prepare the journal entry to close the balance of the Manufacturing Overhead account.

Transcribed Image Text:

Expected manufacturing overhead cost for the year.. Expected direct labor cost for the year. Actual manufacturing overhead cost for the year. Actual direct labor cost for the year. $ 97,800 61,125 104,600 63,900