A company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor hours. For the year, estimated total manufacturing overhead cost was $$277,200$ and total direct labor hours were estimated to be $50,400.$ During the year, actual manufacturing overhead incurred was $$290,410$ and $51,400$ direct labor hours were used.

Required:

a$.$ Calculate the predetermined overhead rate.

b$.$ Calculate how much manufacturing overhead will be applied to production.

c$.$ Is overhead over$-$ or underapplied? By how much?

d$.$ What account should be adjusted for over$-$ or underapplied overhead? Should the balance be increased or decreased?

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Required B

What account should be adjusted for over$-$ or underapplied overhead? Should the balance be increased

Cost of Goods Sold