2.

XYZ applies overhead to its products based on the amount of direct labor costs. The company has

estimated $240,000 of manufacturing overhead costs and estimated $400,000 of direct labor costs for the

upcoming year

XYZ applies overhead to its products based on the amount of direct labor costs. The company has estimated $240,000 of manufacturing overhead costs and estimated $400,000 of direct labor costs for the upcoming year. (25 points) 2. Actuals Direct materials $39,000 $36,000 Direct labor Indirect materials Indirect labor Plant depreciation Property taxes, plant Plant utilities Plant equipment rental $3,000 $4,000 $2,000 $3,000 $5,000 $4,000 Calculate the predetermined overhead allocation rate. a. b. Calculate the overhead cost allocated/applied during the year. Calculate the total the amount of overhead actually incurred during the year What is the amount of over/underallecated overhead? Be sure to identify whether it is over or under allocated d. Prepare the adjusting entry to eliminate the overallocated or underallocated overhead. e