13.

Polymer uses a job-order costing system with a plant-wide overhead rate based on machine hours. At the beginning of the year the company has the following estimates. Machine hours required to support estimated production 100,000 Fixed manufacturing overhead cost $650,000 Variable manufacturing overhead cost per machine hour $3.00

Compute the predetermined overhead rate. During the year Job 400 was started and completed. The following information was available with respect to this job. Direct materials used $450 Direct labor costs $210 Machine hours used 40 Compute the total manufacturing cost assigned to Job 400. During the year the company worked a total of 146,000 machine hours on all jobs and incurred actual manufacturing overhead costs of $1,350,000. What is the amount of underapplied or overapplied overhead for the year? If this amount is closed out entirely to Cost of Goods Sold would the journal entry increase or decrease net operating income?