1) Overhead Allocation Rate (20 points)- Gaelcorp applies overhead based on Direct labor dollars.The following information applies to 2020.

1. Calculate the Overhead Application Rate using the information below.
2. How much overhead was charged in 2020?
3. Was the overhead overapplied or underapplied?By how much?
4. Prepare the journal entry for the write off to Cost of Goods Sold.

1.Budgeted Manufacturing Overhead $7,600,000

2.Budgeted Direct labor dollars $ 400,000

3.Actual Overhead $7,320,000

4.Actual Direct labor dollars $392,000

2) What is the difference between Job order cost accounting and Process Cost Accounting?(10 points)

3)What is Activity Based Costing?How does it differ from the other Cost Accounting Methods we studied?(10 points)

4) Prepare the Journal entries and answer the following questions using the Job order Costing System. (50 points)

1. Purchased $800 Raw Materials on Credit.
2. The Factory requests $710 Direct Materials and $100 indirect Materials from the Raw Materials Warehouse
3. The Factory incurs $1300 of Direct Labor and $900 Indirect Labor
4. Overhead is applied at 150% of the Direct Labor Cost.
5. The Factory has the following Actual Overhead costs:

1.Depreciation $400

2.Other Overhead $550

6)Finished Goods worth $3500 are transferred to the Finished Goods Warehouse

7) Goods that Cost $2700 are sold for $5500.

8)What is the Gross profit for the month? Show your calculation.

9)If Selling and Administrative expenses are $2000 what is the net income?