1. Mason Company and Rodd Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year.

	Mason Company			Rodd Company
Actual manufacturing overhead	$	139,500		$	233,100
Actual direct labor hours		20,000			23,000
Underapplied overhead					10,000
Overapplied overhead		22,500

Required:
a.	Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.)

	Per Direct Labor Hour
	Mason Company	Rodd Company
Predetermined overhead rate

b.

Using T-accounts, record applied and actual overhead and the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.

Adjusting Entry for Mason Company:

Adjusting Entry for Rodd Company: