Selected cost data for Classic Poster 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 underallocated or overallocated manufacturing overhead,

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

Transcribed Image Text:

Estimated manufacturing overhead cost for the year ...... $100,000 Estimated direct labor cost for the year........... Actual manufacturing overhead cost for the year. Actual direct labor cost for the year. 80,000 83,000 64,000