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A company applies overhead at a rate of 200% of direct labor cost. Actual overhead cost for the current period is $1,291,100, and direct labor
A company applies overhead at a rate of 200% of direct labor cost. Actual overhead cost for the current period is $1,291,100, and direct labor cost is $636,000. 1. Compute the under- or overapplied overhead. 2. Prepare the journal entry to close over- or underapplied overhead to Cost of Goods Sold. Required 1 Required 2 Compute the under- or overapplied overhead. Actual overhead Applied overhead Direct labor cost Overapplied overhead Underapplied overhead Factory Overhead Required 1 Required 2 > Journal entry worksheet < A Record the entry to close over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal
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